The Big Picture: Market Volatility
Author: The editor's desk
January 11, 2019
Source: AGF, Bloomberg, Strategas as of January 8, 2019
Chart shows the percentage of days in which the S&P 500 Index had a daily gain/loss of greater than 1%
Yes, it was a wild ride in 2018. And this year has started with a bang, too. The S&P 500 has already been marked by percentage moves of greater than 1% in the first five days of trading in January. Meanwhile, in three of the first five days this month, the key U.S. stock index experienced a more than 2% move in either direction.
To put this in perspective, since 1982, 50.4% represents the average number of days with moves greater than 1%. But the current volatility pales in comparison with the worst of times since ‘82. In both 2002 and 2008 (the year of the financial crisis), the S&P 500 closed up or down by 1%, in 90% of trading days.
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