Tom Nash

How Much Lower Can The Stock Market Go?

Added 2022-12-25 13:28:35 +0000 UTC

So first of all, how much more do we have to drop from this point, given the markets have been dropping quite significantly lately? The S&P500 is down 20% this year, the Dow is slightly better with only 9% but the NASDAQ really had a bad year with a 34% drop year to date.

So if we are heading into a recession and a stock market crash, how much more do we have to drop before we find the bottom? Let’s see what happened in the previous 2 crashes:

2000 Crash:

· S&P 500: -49.1%

· Dow Jones Industrial Average: -38.8%

· NASDAQ Composite: -78.4%

2008 Crash:

· S&P 500: -57.7%

· Dow Jones Industrial Average: -53.8%

· NASDAQ Composite: -49.1%

So, on average drop in a crash for the S&P500 in the last 2 crashes was 53%, fir the Dow Jones it was 46% and a whapping 64% for the Nasdaq. That means that if history teaches us anything, and if another recession is in the cards soon, the drop in the NASDAQ so far of 34% is only half way there. Based on the historical average the NASDAQ can drop another 30% before finding bottom. The S&P can drop another 33% and the Dow Jones another 36%.

The people who are screaming that the recession and stock crash already happened need to look at history and do some math. Be careful from morons on social media guys.