Blood, Sweat and Tears belted these words out in their 1969 hit “Spinning Wheel”. This year’s volatility has many investors feeling as though they’ve been on a spinning wheel. Is this volatility normal or abnormal?
When we take a look at the historical data, this volatility is, in fact, quite normal. It was 2017’s sanguine markets which were quite abnormal when compared to historical data. Crestmont Research published a paper on historical volatility at the beginning of January 2018, a month before the market turmoil that ensued in February and March. This year’s yo-yo market makes it a timely read.
Click the link below to read the paper:
https://www.crestmontresearch.com/docs/Stock-Volatility-Perspective.pdf