The game of risk
Out of the 20 highest ever single-day percentage gains on the Dow Jones two have occured in 2008. The 5th largest percentage gain was on October 13 and the 6th was on October 28, with gains of 11.08 and 10.88 respectively. With the exception of a 10.15% gain in 1988 every other of the highest gains occurred during the great depression.
Out of the 20 highest intraday points swing (difference between day highest and lowest points throughout a day) 16 have occurred in 2008.
Over the past week or so in Ireland there have been plenty of job announcements
[jobs, jobs, jobs, jobs, jobs] but even more announcements of redundancies (no links needed).
The association between stock market fluctuations and job fluctuations is risk. Uncertainty in both areas means that some people will take a risk and some will not be willing to take any risks. Governments around the world are trying to sure up banks and industries so that confidence will return and the element of risk will be reduced.
So if you want to know when the recession is over then ask yourself if you would invest in a bank or take a mortgage out for a second home. If the risk is way too high then you’re probably still in a recession.
