It's extremely rare. But it happens. The size of the damage at the EWZ
In its largest percentage fall in a single day, the Dow Jones plummeted 22.6% on Black Monday, October 19, 1987 – a very rare phenomenon driven by widespread panic heightened by the then novelty of computerized trading models. The crash of this magnitude was considered statistically ‘impossible’ – a 25 sigma event, or 25 standard deviations.
The Dow Jones index plummeted 22.6% on Black Monday, October 19, 1987, considered statistically 'impossible' with 25 standard deviations. The Brazilian stock market, tracked by the EWZ ETF, also experienced a rare drop of 19.8%, equivalent to 8.4 standard deviations, according to Kobeissi Letter. This event has a probability of 1 in 58 quadrillion under a normal distribution. The EWZ ETF has seen similar extreme drops, including 23.09% on March 16, 2020, and 19.6% on October 15, 2008. The EWZ closed 0.4% higher today.
Written by urgent.news from Brazil Journal's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
