The Dow is currently trading at 11221.78 (morningish Pacific Time). Should the DOW close down 20% (and it will) or more from its peak in October (Oct 9, 2007: 14,164.53), we will see headlines tonight and tomorrow morning:
"DOW IN OFFICIAL BEAR MARKET"
"Dow Jones Industrial Average confirms Bears over Bulls"
or whatnot...
My question is this. Why does a -20% decrease from a previous high equal a bear market? I don't think you'll see any convinving arguments on why it should rather be -10% or -25% or maybe -16.645%???
Look for the DOW to go down to the mid-10's and even further.
The point here is, folks, not to allow fear tactics to mess with your investor mindset. If they are, take a break before you decide to make any type of trade!
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