• Myles Shin

Today I Reacted To... The DOW JONES Drop 800 Points

We are doomed. The stock market is 1/4 of the main representatives of how the economy is doing. This week, DOW JONES dropped over 800 points on Wednesday August 14, 2019. This was the most it dropped in so long. For the past few years it would go up and down around 300 dollars everyday, usually going up more than down. The stock market has rapidly climbed and so it was about time for something like this to happen. The following days the stock market has recovered a little but is still down from the past few weeks. This huge negative spike was due to the fact that people are scared of the next recession up ahead, almost coming in the next few years indefinitely.

Also, there now is an inverted yield curve. This means that people are now investing in government bonds of 10 years rather than 2 years because they have more faith in the government long term. There has been an inverted yield curve just before the last few recessions. This definitely is not a good sign, it is very indicative of where our economy could/most likely will head. Our future is quite murky, but we can still fix it.