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The sudden stock market drop of February 2018 took many investors by surprise. The U.S. Dow fell 7%.1
Other world markets also tumbled: Japan’s Nikkei by 4.7%; Hong Kong stocks, 5.1%; and London’s FTSE 100, nearly 2%.2
The wild ride had some investors and leading economists contemplating the deeper significance of the market fluctuation. Was this a prelude to darker financial times? Was all the good news about the economy merely just a lot of monetary smoke and mirrors?
The short answer to all those questions: This appears to be a mere—although meaningful—blip on the historical radar.
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