| January 24, 2016 Hi fellow Fools - Another week, another wild ride in the market. On Wednesday, the effects of panic gripping the market were on full display. By mid-day, the S&P had plunged 3.7%. Combined with previous losses, the total market meltdown stood at 15% since just last summer. If you were nervously watching the market during Wednesday, you were far from alone. The S&P 500 Volatility Index (VIX), known as the "fear index," surged to levels more than double where it sat on Christmas Eve. And then... right as the selling seemed ready to spiral into a day of epic losses... it suddenly stopped. The S&P shot upward, the fear index slid, and stocks closed down less than a percent. Was Wednesday's sudden rally the first sign of 2016 turning around for investors? I've compiled some surprising information on what happens to the stock market when years start out as crummy as 2016 has -- it's not what you might expect. Fear hasn't left the market Make no mistake; even after Wednesday's mid-day rebound ... we're still a good amount below those summer highs. Fears still remain. Cheap oil prices might be a boon to consumers, but could also cause a wave of bankruptcies across energy. Concerns about China's growth remain. We're still just a couple weeks past RBC Bank telling clients to "sell everything!" A bold claim! Yet, that's the kind of advice you see when the Dow Jones Industrial Average opens with its worst four-day start to a year... ever. Seeing 2016 top the list of worst starts to a year got me thinking... What ended up happening in the other years when the stock market rang in a new year with days of losses? Below is a list of the four worst starts for the Dow Jones average since 1900. Worst starts to a year after 4 days for Dow since 1900 | Year | Return after 4 Days | Rest of year return | | 2016 | -5.23% | We'll see... | | 1978 | -4.53% | Up 1.45% | | 1991 | -4.21% | Up 25.61% | | 1904 | -4.15% | Up 48.8% | Source: See It Market Wow. The results are pretty astounding. Not only did each of the other three years that started terribly end up positive the rest of the way... In two of the years (1991 and 1904), the Dow posted monster returns! Which isn't to say that the market is in any way assured of storming back in 2016. In the coming weeks, we could very well drop past the low points of last Wednesday... Yet, it is pretty strong evidence that a terrible couple first weeks for a year doesn't assure 2016 will be terrible for investors. Sell everything? You can look at the investors in 1991 that would have missed out on 26% returns before making that call. Final thoughts I'll close today with a few of my favorite articles from across Fool.com this week. Our analysts offer dozens of articles every single day analyzing everything from how to save money on your taxes, to stock ideas, to the state of the markets. One thing you'll never find from them are the arbitrary predictions of where the market is going next week... or the weeks after... that are far too common in finance. They're 100% focused on ideas that will help build your family's wealth for the long run. Here are three of my favorite articles from the past week: 5 Smart Tax Moves You Could Make in 2016
A new year means a new tax season. Motley Fool personal finance expert Dan Caplinger gives five helpful ways you can minimize Uncle Sam's cut of your earnings. The Only Chart That Matters During a Stock Crash
On any given day, you could find literally hundreds of articles about what caused stocks to move. Yet, there's a big picture look at stocks that's essential for every investor. 3 Top Stocks for Low Risk Investors
Thinking about some new investments, but are concerned about continuing volatility? Here are three stocks poised to generate strong returns over time that won't cause you to lose any sleep. Until next week,   Fool on,
Eric Bleeker, CFA P.S. On Friday Motley Fool co-founders Tom and David Gardner issued their two newest Stock Advisor recommendations. Both are re-recommendations, doubling down on great companies they know well in order to take advantage of recent market conditions. To be among the first to get access to these new picks, I urge you to join Stock Advisor today.
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