The Dow Jones Industrial Average erased all of its gains year-to-date, with a decline of 2.6 percent last week. The S&P 500 Index, Nasdaq and Russell 2000 Index also fell more than 2 percent, as the U.S. stock market closed out the month in the red.
Unless there are very unusual conditions, sessions like last Thursday - when the Dow Jones Industrials lost more than 300 points in a single day - typically lead to the transfer of shares from weak hands to strong hands.
The Committee judges that inflation at the rate of 2 percent, as measured by the annual change in the price index for personal consumption expenditures, is most consistent over the longer run with the Federal Reserve's statutory mandate.
At its peak in 1937, the index was 29% below the real all-time high of 1929. For a scholarly study of secular bear markets, which highlights the same key turning points, see Russell Napier's Anatomy of the Bear: Lessons from Wall Street's Four Great ...