The Dow Jones closed the week down 3.20% from its last all-time high. On a week where the FOMC cut its Fed Funds Rate by twenty-five basis points (0.25%), the Dow Jones deflated 2.59% BEV points from last week’s close, or down 707.44 dollars.
Back in the late 1990s, even a rumor that Alan Greenspan was even thinking he may cut the Fed Funds Rate by twenty-five basis points caused the bulls on the floor of the NYSE to begin dancing, beating their copper kettles with wooded spoons for joy. Twenty years later we live in a different world.
Certainly in the past eighteen months things have changed. Look at all those BEV Zeros (new all-time highs) in the Dow’s BEV chart below from 2013 to the end of 2017. But since the beginning in January 2018 the Dow Jones has seen only four BEV Zeros last autumn, another four this summer, and sandwiched in between these paucities of new all-time highs is the deepest post March 2009 market correction; an 18% decline late last December.