# Any particular reason the dow is dropping so fast lately

**URL:** <https://boards.straightdope.com/t/any-particular-reason-the-dow-is-dropping-so-fast-lately/826655>\
**Category:** Miscellaneous and Personal Stuff I Must Share\
**Created:** [December 25, 2018, 12:14am UTC](https://boards.straightdope.com/t/any-particular-reason-the-dow-is-dropping-so-fast-lately/826655 "2018-12-25T00:14:20Z")\
**Posts on this page:** 8\
**Page:** 2

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**Author:** ![snowthx](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/snowthx/32/10660_2.png) [@snowthx](https://boards.straightdope.com/u/snowthx)\
**Post date:** [December 27, 2018, 7:22pm UTC](https://boards.straightdope.com/t/any-particular-reason-the-dow-is-dropping-so-fast-lately/826655/21 "2018-12-27T19:22:26Z")

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Thanks for the informative post, **China Guy**!

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**Author:** ![XT](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/xt/32/456_2.png) [@XT](https://boards.straightdope.com/u/XT)\
**Post date:** [December 27, 2018, 9:16pm UTC](https://boards.straightdope.com/t/any-particular-reason-the-dow-is-dropping-so-fast-lately/826655/22 "2018-12-27T21:16:35Z")

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> [@China\_Guy](#):
>
> I’m an ex investment banker. I sold everything in May 2017, so I’m a patsy. In the markets, timing is everything. Maybe I sold to early, but I sleep easier. Markets are rationale over the long term, but can be \*extremely \*irrational short term.

I’m not investment banker or investment anything but I divested most of my holdings from the market around that same time. I was getting twitchy, expecting a correction at least a year or so ago. I missed out on some of the top end of the market, but I got a lot of mileage out of 2008-2017 and my stuff is well protected atm from this downturn.

I think the OP has been answered already, but myself I think a market correction was overdue, that with all of the uncertainty that Trump brings along with the trade war and the fact that a lot of the rest of the world is having economic issues (one has but to look at China’s stock market to see REAL issues) and the FED finally increasing interest rates (again, something overdue) that the market was going to drop. I think China Guy’s post on the technical aspects of why we have corrections like this was also a good point.

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**Author:** ![Ruken](https://avatars.discourse-cdn.com/v4/letter/r/f475e1/32.png) [@Ruken](https://boards.straightdope.com/u/Ruken)\
**Post date:** [December 27, 2018, 11:39pm UTC](https://boards.straightdope.com/t/any-particular-reason-the-dow-is-dropping-so-fast-lately/826655/23 "2018-12-27T23:39:09Z")

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WSJ’s take(s) on recent market behavior here:

> **[Behind the Market Swoon: The Herdlike Behavior of Computerized Trading](https://www.wsj.com/articles/behind-the-market-swoon-the-herdlike-behavior-of-computerized-trading-11545785641)**
>
> The majority of trades come from machines, models, or passive investing formulas that move in unison and blazingly fast. This quarter’s sharp declines are symptoms of the modern market’s sensitivities, the same ones that drove gains through the first...

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**Author:** ![Trom](https://avatars.discourse-cdn.com/v4/letter/t/958977/32.png) [@Trom](https://boards.straightdope.com/u/Trom)\
**Post date:** [December 28, 2018, 8:03pm UTC](https://boards.straightdope.com/t/any-particular-reason-the-dow-is-dropping-so-fast-lately/826655/24 "2018-12-28T20:03:33Z")

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> [@Ruken](#):
>
> WSJ’s take(s) on recent market behavior here:  
> [https://www.wsj.com/articles/behind-the-market-swoon-the-herdlike-behavior-of-computerized-trading-11545785641](https://www.wsj.com/articles/behind-the-market-swoon-the-herdlike-behavior-of-computerized-trading-11545785641)

Rebuttal to the WSJ article: [The Market Is Down! Round Up the Usual Suspects!](https://streetwiseprofessor.com/the-market-is-down-round-up-the-usual-suspects/)

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**Author:** ![Ruken](https://avatars.discourse-cdn.com/v4/letter/r/f475e1/32.png) [@Ruken](https://boards.straightdope.com/u/Ruken)\
**Post date:** [December 29, 2018, 1:05am UTC](https://boards.straightdope.com/t/any-particular-reason-the-dow-is-dropping-so-fast-lately/826655/25 "2018-12-29T01:05:12Z")

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> [@Trom](#):
>
> Rebuttal to the WSJ article:

😃

> [@](#):
>
> And untestable hypotheses are effectively speculations and opinions, and like certain body parts, everybody has one.

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**Author:** ![Jackmannii](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jackmannii/32/311_2.png) [@Jackmannii](https://boards.straightdope.com/u/Jackmannii)\
**Post date:** [December 29, 2018, 1:41am UTC](https://boards.straightdope.com/t/any-particular-reason-the-dow-is-dropping-so-fast-lately/826655/26 "2018-12-29T01:41:35Z")

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> [@Fear\_Itself](#):
>
> I predict the Dow will be down for the week.

_“The Dow managed to gain 617 points this week, easily the best performance of the month.”_

> **[Dow finishes lower to cap wild week on Wall Street | CNN Business](https://www.cnn.com/2018/12/28/investing/dow-stock-market-today/index.html)**
>
> Capping a week of wild trading on Wall Street, stocks ended Friday on a quiet note.

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**Author:** ![Fear\_Itself](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/fear_itself/32/19637_2.png) [@Fear\_Itself](https://boards.straightdope.com/u/Fear_Itself)\
**Post date:** [December 29, 2018, 1:19pm UTC](https://boards.straightdope.com/t/any-particular-reason-the-dow-is-dropping-so-fast-lately/826655/27 "2018-12-29T13:19:48Z")

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> [@Jackmannii](#):
>
> _“The Dow managed to gain 617 points this week, easily the best performance of the month.”_
> 
> [http://cnn.com/2018/12/28/investing/dow-stock-market-today/index.html](http://cnn.com/2018/12/28/investing/dow-stock-market-today/index.html)

I was wrong.

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**Author:** ![Jackmannii](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jackmannii/32/311_2.png) [@Jackmannii](https://boards.straightdope.com/u/Jackmannii)\
**Post date:** [December 29, 2018, 3:24pm UTC](https://boards.straightdope.com/t/any-particular-reason-the-dow-is-dropping-so-fast-lately/826655/28 "2018-12-29T15:24:41Z")

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> [@Fear\_Itself](#):
>
> I was wrong.

Well, wait a week.

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