One year and -4,906 points later
A year ago, risk-taking sent the Dow to its highest peak ever. But even experts were blindsided by the dramatic decline
By CARRIE MASON-DRAFFEN
Oct. 8, 2008, 11:53PM
A year ago today, the Dow Jones Industrial Average reached its highest level ever, 14,164.53 points.
But after a spate of financial earthquakes including the current credit crunch and the need for a $700 billion government rescue package, the Dow, not surprisingly, is headed in the opposite direction.
Monday it closed below 10,000 for the first time in four years, at 9,955.50, down nearly 370 points. Tuesday, it continued that slide, closing at 9,447.11, down more that 500 points, then dropped another 189.01 points on Wednesday to close at 9,258.10.
All told, the Dow has fallen more than 30 percent from last year's all-time high.
The Dow's dramatic drop and the economy's spectacular downturn were hard to call, some experts said, because, unlike the tech bust that was limited to extraordinary risk-taking in one sector, the downturn involves several areas: the mortgage industry, credit markets, banking and the stock market. And some financial planners believe this market more than ever demands that people rely on a balanced portfolio to weather the storm