Mr. Malkiel has for years been on the board of the Vanguard Group, which has spent three decades bringing index funds to American investors.
The drop brought the index to 111.7, after a rise of 0.1percentt in March.
"It has brought the index into bear market territory," he said.
That sharp decline brought the index to a level signaling that the economy has been slowing — perhaps into a recession.
"But gold, turtledoves, French hens and higher wages for maids and dancing ladies brought the index up".
The February decline of 6.9 points brought the index to 87.8, about where it was at the start of the last recession, in July 1990.
As I brought my index finger to within an inch of hers, she took hold, tightened her grip, and would not let go until the man, shifting the weight of her to his other shoulder, turned around.
The increase brought the index, now at 1,071.49, up 19% on the year, and negated the downward slide of the prior two weeks.
And yesterday's 1.7% drop in the Dow Jones industrial average, which brought the index down 171 points to close below 10,000, was no big deal.
Today's 61 point gain brought the index to 2652, smashing through its previous closing record of 2598, set on April 12.
