Why doesn't the global stock market crash matter much? Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Stocks, which only recently have been hitting a new record practically every other day, suddenly appear to be in free fall or at least on a very wild ride. Global stock markets plummeted on February 5, continuing the previous week's precipitous decline. The Dow Jones Industrial Average, one of the most followed indexes, fell nearly 1,200 points, a loss of 4.6% and the steepest drop of one point. Furthermore, 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 dollar-for-dollar purchases. Don't Panic First, the stock market often makes very drastic moves in a short period of time, and occasionally extreme volatility like Monday occurs. One of the most famous market crashes occurred in 1929, at the beginning 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 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 still affected by market movements. Pensions and money in retirement accounts are affected by the ups and downs of the market, so much so that some retirees' incomes are affected. About 37% of shares in the US UU. They remained in retirement accounts in 2015, a sharp increase compared to 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 common stock or equity funds. Furthermore, the amount of money invested by this select group of families who directly own stocks is quite low. This does not mean that someone invests only a small amount in socks. A small group's wealth has taken a big hit in recent days, and the richest have lost around $250 billion since last week. However, changes in future retirement income generally do not affect ongoing expenses. Additionally, some people have the option to buy their company's stock in the future. So if you're one of that 14%, Warren Buffet, for example, you care a lot, he lost $5.1 billion on February 5th. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay That means the next time you hear that the stock market has set a new all-time low, or even a record high, you know that it only affects a small percentage of Americans. Among the families directly affected, the average is likely to change their spending habits slightly. Amazon's Jeff Bezos, for example, is unlikely to change his lifestyle just because he lost $3.26 billion in one day, given that he still has $116 billion left. Finally, a decline today does not rule out a dramatic increase in the future. Crater stocks are great news.