Today’s trading reminded me very sharply of what happened on April 4, 2000 when the Nasdaq fell by about 13% but recovered to end the day nearly flat. The CNNFN article has a few charts.
Ten days later, the Nasdaq was down 20%. The following week, the Nasdaq was up 10%.
For the next few months the Nasdaq gyrated, but peaked at the end of August before resuming its descent in September 2000, all the way until October 2002 when it plunged down to about 1200.
Is history repeating? I don’t know.
Is it a good time to be on margin? Probably not. The volatility will kill you.