Because the collapse of the global stock market doesn't really matterSay no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get an Original EssayStocks, which have only recently been hitting a new high virtually every other day, suddenly appear to be in freefall or at least a very wild journey. Global stock markets collapsed on February 5, continuing their sharp decline from the previous week. The Dow Jones industrial average, one of the most followed indexes, fell nearly 1,200 points, a loss of 4.6% and the largest drop of a point. Additionally, when wealth increases, such as when the stock market or real estate market increases in value, people often spend only a fraction of it. When wealth declines, many people do not reduce their purchases from dollar to dollar. Don't panic. First, the stock market often makes very drastic moves in a short period of time and extreme volatility, like Monday's, sometimes occurs. One of the most famous market crashes occurred in 1929, at the start of the Great Depression. On Friday, October 25, 1929, the Dow Jones industrial average closed at 301. The following Monday, nicknamed "Black Monday" in the trading world, the Dow Jones closed at 260, a decline of 13.5%. It's also important to keep in mind that some people who don't own stocks are nonetheless influenced by market movements. Pensions and money stored in retirement accounts are subject to market fluctuations, so some retirees' incomes are affected. About 37% of shares in the United States UU. They remained in retirement accounts in 2015, a sharp increase from the recent past. Every three years, the Federal Reserve surveys thousands of American families about their finances. The effort is called the Consumer Finance Survey. Their latest data shows that only 14% of all U.S. households. UU. They directly hold shares or common stock funds. Additionally, the amount of money invested by this select group of households that directly own stocks is rather small. This is not to say that anyone only invests a small amount in socks. In recent days, the wealth of a small group has taken a big hit and the richest have lost around $250 billion since last week. However, changes in future retirement income generally have no effect on current spending. Additionally, some people have options to purchase shares of their company in the future. So if you're in that 14 percent, Warren Buffet, for example, who you care a lot about, lost $5.1 billion on February 5th. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Custom Essay This means that the next time you hear that the stock market has set a new high, or even a record high, you'll know that this only concerns a small percentage of Americans. Among the families directly affected, it is likely that the average will slightly change their spending habits. Amazon's Jeff Bezos, for example, is unlikely to change his lifestyle just because he lost $3.26 billion in one day, while he still has $116 billion left. Finally, a drop today does not exclude a spectacular increase in the future. Crater Stocks Are Great News.