Okay, so it’s not the best way to end the summer. August is usually a dull month on Wall Street, but this year it’s an all-hands event as stocks plunge and investors brace for more. So far, the S&P 500 stock index (GSPC) has fallen by about 9% for the month and 8% for the year.
But that doesn’t mean end times are nigh or we’re facing another recession. A falling stock market usually damages consumer confidence, as investment accounts fall in value and scary headlines dominate the news. But the market doesn’t always reflect what’s happening in the real economy, and most ordinary people aren’t harmed by short-term declines in the stock market.
Rick Newman | Yahoo Finance