Today is Sunday, April 9, 2000, and there is a snowstorm here in Greenwich with a forecast of up to six inches before yesterday’s temperatures in the low 70s return. Thousands of magnolia blossoms that have made their debut within the last several days now lie helplessly on the porch’s wet cement unable to bear the weight of the snow coupled with the wintry gusts.
We are telling you this because there seems to be an uncanny correlation between today’s weather’s behavior and the stock markets’ behavior.
Last Tuesday, April 4th, the Nasdaq made a record-breaking 1,074 point round trip. Bill Gates’ loss was a reported $12 Billion for the day as Microsoft’s market value reportedly dropped a little over $80 Billion. Don’t cry for Bill. He is still the wealthiest man in the world.
The April 5th Investor’s Business Daily carried as its Number One story: Intraday Panic Cuts 13.6% Off Nasdaq Till Buyers Bite — The Nasdaq’s correction turned into a scary freefall — with the index losing 575 points or 13.6% of its value — before bargain hunters stepped up and pulled it back to a loss of just 75. Volume was a staggering 2.9 billion shares. The action among the blue chips was less pronounced but no less breathtaking. The Dow industrials plunged 504 points, or 4.5%, before recovering to lose 57.”
The Nasdaq peaked on March 10th with an intraday high of 5132 and declined 1,483 points or 29% on April 4th to 3649 within a period of 16 business days.
The incredible, mind-boggling volatility continues.
John, W. Hamilton
April 9, 2000