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cover of episode Decoding Monday's Market Madness with Dr. Shane Shepherd

Decoding Monday's Market Madness with Dr. Shane Shepherd

2024/8/7
logo of podcast Money Rehab with Nicole Lapin

Money Rehab with Nicole Lapin

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Monday's stock market decline was the worst in years, with major indices like the Dow, S&P 500, and Nasdaq experiencing significant drops. While concerning, such volatility isn't unusual and shouldn't deter long-term investors. The market drop requires context, especially considering the recent 12% single-day drop in Japan's market.
  • The Dow dropped 2.6%, the S&P 500 dropped 3%, and the Nasdaq was down more than 3%.
  • This level of decline is significant but not historically extreme, especially when compared to Japan's recent 12% drop and the 25% drop in the S&P 500 in October 1987.
  • Long-term investors are advised to ride out these fluctuations.

Shownotes Transcript

After Monday's stock market tumble, you might be asking yourself: what the heck is going on? Nicole is answering just that with the help of Dr. Shane Shepherd (Assistant Professor of Finance and Business Economics and the Academic Director for the Master of Science in Finance Program program at USC). Dr. Shepherd and Nicole talk about the unexpected factors that led to the market dip, how to protect your portfolio, and whether we're headed for a recession.

Find more of Dr. Shepherd's work here: https://www.marshall.usc.edu/personnel/shane-shepherd