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What Does the Market Decline Mean for You?

Market drops are scary, especially when they come day after day. The decline on Monday, February 5, was particularly bad. In fact, it has been billed as the largest point drop ever for the Dow Jones Industrial Average. Looking at that, it’s normal to think that the stock market is in a downward spiral. History shows, however, that this is often not the case. Although declines like we have seen in the past week are not fun, they generally are not reason to panic. Putting the decline in context Let’s look at this more closely. February 5 was a bad day; the last time we had a day like that was in 2011, about seven years ago. This tells us two things about how we should react. First, this was an

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