Justin Fox on our new era of volatility:
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
I don’t think I’ve seen anyone even seriously attempt to explain why this would happen. Stock market crashes are, obviously, not unprecedented. But never before have they entailed this kind of wild, up-and-down day-to-day swinging. What’s different now?
Previous in TP Yglesias
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