The Detroit News. Now that's been tempered by a whiff of economic decay here and overseas. This week, the Dow Jones industrial average could turn in its worst percentage decline since 1987, when it fell 7.5 percent the week ended Dec. 4. They were egged on in no small part by a stock-selling industry that saw its profits double over the past five years.
Mass psychology is hugely important in the movements of financial markets.
People perceive things as less risky as they become more familiar with them. With each piece of subsequent bad news, the overreaction could get worse. Don't be surprised if the Dow is at 5,000 a year or so from now.