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Medved: Stock market dive is bad, but not as bad as you think

Feb 5, 2018, 2:27 PM | Updated: 2:34 pm

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Specialist Meric Greenbaum works on the floor of the New York Stock Exchange Feb. 2, 2018. The stock market had a weeklong slide as the Dow Jones industrial average plunged more than 600 points. Some investors believe the market can recover, noting that both global economic growth and corporate earnings remain strong. (AP Photo/Richard Drew)

(AP Photo/Richard Drew)

As Michael Medved heard about flat-earth schemes or bitcoin coming to disrupt the global market — it was conspiracy day on the radio show — concerns of a new recession or bear market seemed to fit right into the mix.

Stock market numbers were taking a dive and causing alarm across the US economy.

“It’s bad … it’s below 25,000 — remember it had been up above 27,000,” Medved said. “This is going to be one of the worst days in Dow Jones history, it appears.”

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It’s the worst drop in the market in about 6.5 years — after the infamous 2008 financial crisis. But despite the shocking drop in stock market numbers, Medved notes that when considering the big picture, it’s not as bad as many may think. It is just one factor in the entire economy. Medved said that some financial experts were saying that the numbers will likely continue to fall over the next day or two, yet it is not the beginning of a new recession or bear market. The market, rather, is just experiencing volatility.

“But it’s a correction and the sort of correction that everybody has talked about long in advance,” Medved said.

“We’ve had worse days,” he said. “Obviously, the worst day we can find is back in October of 1929 when the market was a tiny fraction of what it is today … by the way, the market is rushing back, it’s gained 500 points. The volatility of the market today is dramatic and to go from 1,500 points moments ago, to now 988 – it’s back-and-forth. It’s volatile.”

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Medved: Stock market dive is bad, but not as bad as you think