Review: Opinion: Today’s big drop in the Nasdaq 100 will happen repeatedly in 2018

Review: Opinion: Today’s big drop in the Nasdaq 100 will happen repeatedly in 2018
As my readers know, I’m skeptical of all market predictions since none of us are psychic, but for once, I actually agree with an article making a big prediction about what the markets will do in the short-term future…But – and you knew there was a but there – while I agree with the result, it’s for the exact opposite reason the author thinks. This week, on Wednesday, we saw a reasonably large drop in the Nasdaq 100 Index, which tracks the largest 100 non-financial companies on the Nasdaq. Over the course of the day, it dropped a little more than 101 points, or almost 1.6%. In fact, at it’s low point on Wednesday, it was down a whopping 2.25%. The author of this article has all sorts of reasons involving sector rotation and valuations, and all sorts of other stuff. A simpler way to look at this though, is to simply ask how often the markets have seen a drop like this in the past. I pulled the daily values of the Nasdaq 100 Index from the beginning of October 1985 until Wednesday’s drop (11/29/17), and it turns out what we saw Wednesday is far from unusual. If we […]

Source: Retirement Researcher

Review: Opinion: Today’s big drop in the Nasdaq 100 will happen repeatedly in 2018

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