Ascent of Money 3 - DOW Blog - Evaluate the Market - JM

John Mazziotti

Mr. Roddy

GPHC

April 21st, 2020

Evaluate the Stock Market Blog
      In late March 2020, the stock market dropped 913 points (4.55%) in one day (Friday, March 20th). The stock market recession that we are living in today is due to the Coronavirus. This has caused companies that are a part of the DOW industrial avg to limit or cease production of certain products, which has caused a large problem in our economy. A big local factor that will be affecting us as Houstonians, is the large drop in oil. The price, demand, and production of oil has fallen dramatically in the past few months, and you can actually go to a gas station for prices as low as $1.30/gal. Based on previous trends like that of the 2008 stock market crash, I can see that 6 months after the market crash then, the market recovered 1/3rd of its highest point before the crash. From the same crash you can also see that a year after the 2008 crash the market recovered approximately 50% of its highest point before the crash.
The most noticeable GPHC concepts that we see now or that we expect to see in the coming months are: power and sustainability. The companies that are a part of the DOW jones industrial avg. play a big role in keeping our economy afloat, not to mention that they are the essential organs for our country’s success in staying in good health. Sustainability is also another large factor for this recession. Lots of needed products are being hoarded in many of our shops, and food was also scarce at one point. Farmers do reflect the sustainability of this crisis perfectly, they are pouring out thousands or hundreds of thousands of gallons of milk or destroying this year's crop yield, due to the low demand. Looking into the future, I can see within the next few weeks that our economy will slowly (most likely very slowly) start to recover.
Works Cited:
Foimbert. “Here's What Happened to the Stock Market on Friday.” CNBC, CNBC, 21 Mar. 2020, www.cnbc.com/2020/03/20/what-happened-to-the-stock-market-friday-stocks-post-worst-week-since-2008.html.

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