Following up on my post about the lack of volatility in the last few years, I have now added another chart – of weekly moves of greater than 4%. The chart below shows instances of moves at the end of every week where the index has gone up or down by over 4% over the previous week’s close.
Again, recent times seem to be anomalous. While you might attribute lower volatility to global markets or "Quantitative Easing”, I believe an it’s very dangerous to believe in things like “new normals”. This time it’s different are the worst four words ever; the more things change, the more they are the same.
