I got asked this question offline, and I didn’t have an answer, so I’ll ask some smart people:
As opposed to all the percentages and points, can anyone put a DOLLAR AMOUNT on what’s evaporating? Just how much wealth is being lost?
No wealth is lost. Market has more than tripled since 2009.
Which is over 200% gain in less than 7 years.
Now it is down 10% from recent highs. Not YUGE!
Last week, $1.5 Trillion of wealth was lost.
A few trillion.
I don't view it in those terms. I lose no wealth unless I chose to sell at those depressed prices.
Many will sell. Many will buy and gain the rewards by waiting for the recovery.
Those that view it as inflated prices to begin with will see it as restoring to appropriate value as well.
I never found way of looking at the market useful. Suppose you bought a rare coin for $1000. I later offer you $1200 for the coin, which you refuse. Later someone offers you $900. Has $300 of your wealth evaporated? Not at all.
All that matters is your specific buying and selling prices. Intervening offers don't matter.
Someone said a trillion per 700 points on the dow last week beats me