How upset should you be at a 500-point drop in the Dow? History suggests you should expect it to happen every six weeks or so, says jasonzweigwsj
When stock markets fall sharply and immediately recover, the losses seem to disappear. But that doesn’t mean no one feels any pain.
The Dow Jones Industrial Average fell 617 points, or 2.4%, on Monday—then promptly went up by an almost identical amount over the next three days. If you headed off for a hike in the wilderness on May 10 and came back on May 16, you might have concluded that nothing had happened: Over the full stretch of those four trading days, the Dow ended up just about where it started.
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