With the S&P 500 down 2.9% or so today, I found myself saying: “Geez. These big whacks seem to be happening more and more. It never used to be like this.”
So to entertain my curiosity I went back and looked at how frequently the S&P closed up or down at least 2%. The results are pretty staggering:
2006: 2 times
2007: 17 times
2008: 68 times
2009: 48 times
2010 thru today: 13 times
First off, congrats to all who survived ’08 and ’09 and still invest today. It has been a roller coaster to say the least.
Secondly, in a very imperfect and extrapolated way, this shows (at least a little bit) that volatility may be on the decline.
Some food for thought:
Knowing that these large moves still exist remind me that it’s a good idea to have a personal watch list, have patience and wait for your price. Sometimes Mr. Market brings the stocks you like into your buy range.