Saturday, December 06, 2008

Think the Stock Market Has Gotten More Volatile? You're Right!

A tidbit from a Citigroup report, courtesy of Time, with a hat tip to Matthew Yglesias.

Here’s a look at some different time periods and the number of days the S&P 500 has moved up or down more than 5% during the trading day:

  • 1950-2000: 27 days
  • 2000-2006: 7 days
  • Jan. 1-Sept. 30, 2008: 20 days
  • Since Oct. 1, 2008: 22 days
That's astounding. We've had nearly as many 5% moves since October 1 as occurred during the *entire 50-year-period* between 1950 and 2000.

I had been wondering if my perception of volatility was simply due to index inflation (I can still remember the days when the Dow ranged between 1000 and 2000)...apparently not!

Naturally, this calls for facepalms all around!


Mberenis said...

This is a great blog and I'd like to Post a Comment

Did you hear the good news? Obama is making it better for investors already! Most investors don't realize how much money there is out there now. During economic times like this, there is more money to be had than ever. Because of the bailouts and economy, the government and lenders are bending over backwards to bail you out too as a way to jump start the economy.

Regardless of what you hear, there is people getting tons of cheap money for personal use, businesses, buy homes, pay off debt, investing, and more. These people have done the research, just like I have. Bailout is for YOU

Anonymous said...

Check out Nassim Taleb on Charlie Rose. He's basically predicting the end of speculator capitalism. Which might not be a bad thing, as long as it's replaced with actual investor capitalism where the point is to invest in a business that actually generates sustainable profit.

Anyhoo, thought you'd be interested: