-
The Market Just Crashed! What Should I Do?
As I write this post, the Dow Jones Industrial Average has just dropped 1,000 points – the sixth 1,000 point move in the last 12 days. The Dow and the S&P 500 are 13% below their most recent high, well into correction territory. The interest rate on 10-year Treasuries, a safe haven in times of market turmoil, has dropped to a record low 0.7% — substantially less than inflation and only slightly better than stuffing your money in a mattress. (The interest rate on Treasuries, as with all bonds, is inversely related to its price. As panicky buyers bid up the price, the corresponding interest rate is driven down.) The…