The financial media quickly reminded us on Monday February 5, 2018 that the Dow Jones Industrial average endured its largest point decline ever. However, that was with a Dow around 26,000 points, which compares to a Dow of around 2,200 before the largest percentage decline ever on October 19, 1987. This leaves February 5th’s decline of 4.6% at a ranking of number 99 on the all-time list of daily percentage Dow declines.

With the index up over 6% in January 2018, this pullback does not seem anywhere near as severe as the headlines would have you believe. Remember that per Vanguard’s calculations, 41% of months between January 1940 and June 2016 saw a 5% or greater drawdown in the S&P 500 and 26% of those months saw a 10% or greater drawdown. Volatility tends to reset things and provides us opportunities to find better sources of return.