Another Tough Month

And investors thought January was a bad month! The Dow is currently down 11.5% for the month of February, which even dwarfs the horrible decline of 8.83% in January. CNBC anchors have even been calling today an "impressive" day for stocks with all of the bad news that has come out. Only in this market can a decline of 2.36% on the day be called "impressive."

It's been a very tough month for the market to book one-day gains. Since 1900, there have now been 46 months in which the Dow went down on more than 2/3 of the month's trading days (3.5% of all months). Below we highlight these months along with the Dow's change in the following month. As shown, there have only been 4 such months in the past 25+ years where this occurred, and the following month was negative every single time.

Comments

[boats.j:]

And several more to come before the big one! Yeeeeeeehhhhhhhhaaaaa!

Feb 28 01:49 PM

[Lars39:]

Even Warren Buffett's BRK-A is down over 40% since last fall and about 10% down in Feb. Somehow, I thought Buffett would have done better.

Feb 28 04:01 PM

[James Shaw:]

Dow bottom will be in 6000 range before reversal.

March will be another 10%+ down month.

April is earning release month and the earnings could not be good for more companies.

The key is future projection.

Stock price is directly tied to companies' earnings. A rally will occured either April or May.

Feb 28 04:08 PM

[EMS:]

Should by all rights be a big down month, but you know, when things are too predictable the Bulls will be pumping.... Could lead to some serious whip-saw and a big 'rally ' at some point I am afraid...

Feb 28 05:26 PM

[EMS:]

He has lost his proverbial marbles. I am telling you.


On Feb 28 04:01 PM Lars39 wrote:

> Even Warren Buffett's BRK-A is down over 40% since last fall and
> about 10% down in Feb. Somehow, I thought Buffett would have done
> better.

Feb 28 05:27 PM

[ashadu:]

Truely a wealth destroying, no holds barred bear market. will end when the last seller has sold. and that means the bottom pickers will have had thier bottoms picked clean. me included probably.

Feb 28 07:15 PM

[Big K:]

February will seem like a gentle month compared to what is in store for this overpriced market. The economy is shutting down. The new administration is using this as an excuse to seize communistic power and raise taxes on anything that is still profitable. Economy to shrink 15% this year, 15% next year and 15% the following year. Then the bottom is really going to fall out. The US government will be bankrupt, democracy will end, and we will be under a communistic dictatorship. Goodbye to the American experiment. Hello Amerika! The stock market has no bottom and no place in the future of this country. The population will be reduced to foraging in the woods and wilderness for edible mushrooms and insects. Convert all your money to gold. It must be physical gold in your possession. Paper gold stocks/assets will not be worth anything. The government will try to get your gold, so hide it and don't tell anyone you have it.

Feb 28 11:34 PM

[digitaldorobo:]

Are the voices in your head making you so paranoid? It's guys like you that are running out and buying all the ammo.


On Feb 28 11:34 PM Big K wrote:

> February will seem like a gentle month compared to what is in store
> for this overpriced market. The economy is shutting down. The new
> administration is using this as an excuse to seize communistic power
> and raise taxes on anything that is still profitable. Economy to
> shrink 15% this year, 15% next year and 15% the following year. Then
> the bottom is really going to fall out. The US government will be
> bankrupt, democracy will end, and we will be under a communistic
> dictatorship. Goodbye to the American experiment. Hello Amerika!
> The stock market has no bottom and no place in the future of this
> country. The population will be reduced to foraging in the woods
> and wilderness for edible mushrooms and insects. Convert all your
> money to gold. It must be physical gold in your possession. Paper
> gold stocks/assets will not be worth anything. The government will
> try to get your gold, so hide it and don't tell anyone you have it.

Mar 01 12:16 AM

[boats.j:]

And guys like you will be begging them to save your butt in the not to distant future! I'll bet your arrogance will remain intact right up to the moment a bullet enters your skull.


On Mar 01 12:16 AM digitaldorobo wrote:

> Are the voices in your head making you so paranoid? It's guys like
> you that are running out and buying all the ammo.

Mar 01 02:05 AM

[DavyJ:]

There have only been 6 times since 1928 that the DJIA has had a decline of 6 months in a row. In five of those times the index was up the following month.

Feb 2009
Sep 2002
Sep 1981
Jun 1973
Jun 1953
Jan 1942 - down another 3 months for a total of nine months

What does this mean? Absolutely nothing. It's just an interesting fact but someone, somewhere will put a twist on it.

Mar 01 06:50 PM