Dow and S & P 500 each were down 7.8% to Monday. It is the biggest decline for every key market barometer since 1931, according to data from LPL Research. But these losses of depression were much greater: S & P 500 dropped 14.5% while Dow dropped 17%.
Nevertheless, in December 2018, Swoonen makes investors nervous that performance performance may have peaked this year. They are worried that the economy may slow down in 2019 due to continued trade tensions with China and interest rate hikes from the Federal Reserve.
Dow and S & P 500 are both in red for the year and put the stocks on track to get their worst annual loss since 2008 and the first annual loss since 201
But investors can still hope that the markets will turn around for the last days of the month (and the year).
December is usually a very solid month for the market. Professional money managers tend to buy best results stock to make their portfolios look good – a phenomenon called window dressing.
There is also the somewhat mysterious Santa Claus rally effect. The market tends to work well during the last week of the year, some of which cite up to light trading volumes with so many people outside for Christmas.
For this purpose, the shares increased slightly more than 1% Tuesday morning.
So now the market’s current monthly losses are more in line with the poor market trend in December 2002, when Dow and S & P 500 each fell more than 6%.