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!