In this video: The stock market continues to drop. Let's talk about what is happening by looking at the valuation of SPX against M2 and Gold. Video by Benjamin Cowen.
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As of March 22, 2026, the S&P 500 has dropped approximately 7% from its recent all-time high reached in January. The broader market is currently experiencing its fourth consecutive weekly loss, driven by intensifying conflict in the Middle East and concerns over persistent inflation.
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In the context of individual risk management, the 7% Rule is a common strategy where traders sell a stock if it falls 7% below their purchase price to prevent deeper losses.
-Current Pullback: While a 7% drop is significant, it is technically classified as a "pullback"; a formal market correction is defined by a decline of at least 10%.
-Index Status:
---Dow Jones Industrial Average: Down about 6.9% since the start of the Iran war on February 28.
---S&P 500: Down roughly 7% from its January peak, though it fell 1.51% on Friday alone.
---Nasdaq Composite: Down 4.5% since late February, though it has seen sharper intraday volatility.
-Technical Levels: Both the Dow and Nasdaq briefly dipped into correction territory (down 10% from highs) during Friday's trading before closing slightly above those levels.
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