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At one point this morning we looked up and saw the Dow up 130 points, but in percentage terms, the index was up just two-thirds of a percent.  With the Dow currently trading at 19,440, a triple-digit move just barely cracks a move of half a percent.  And if the Dow gets up to 20,000, obviously that means a 100-point gain translates into a move of exactly half a percent.  Yep, 100-point moves just aren’t what they once were.  “Back in the good ‘ole days, a 100-point move meant something.”

Below is a chart that shows the impact of a 100-point Dow move in percentage terms based on where the index is trading in price.  This is obviously common-sense stuff, but we thought it was worth posting given that the index is quickly approaching the 20,000 mark.  From a psychological perspective, a 100+ point Dow move still seems like a big gain or decline in the minds of most investors, but the reality is that at these levels, the index needs to move 200+ points to be categorized as a “big move.”  Over time the psychological adjustment will be made, but for now it’s likely that investors are viewing daily Dow point moves as more impactful than they really are.

100pointmove

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