This week has been a nightmare for almost all investors. The Dow fell 665 points on February 4, 2018, marking the largest single-day loss since June of 2016, and the largest percent decrease since the 2008 recession, according to the New York Times. The next day, the Dow Jones Industrial Average fell another 1,175 points, marking the largest point decrease in history, and arguably the worst economic day in U.S history, too. But is this a cause for concern?
Since Trump's instigation as president, the economy has undergone a steady increase to the point it was before the sharp decline. What this suggests to most analysts and investors is that this event is not a sign of economic instability or a recession. Rather, this decrease is a sign of good economic health and stability, as a sharp decrease after a steady increase usually means a market correction, where the stock market undergoes a decrease after performing well, a common phenomenon. So, is this massive decline in the stock market cause for concern? Probably not.