Capitalmind
Capitalmind
Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial
Charts & Analysis

If You Think Markets Are Volatile, Think Again; We Are Likely To See Much More, Going By The Past

We think markets are volatile as the Nifty has fallen 10% from the all time high. But in the historical context, we are just starting to get there. Here’s how many 2%+ days we have had, from when the Nifty started:

image

The last year (2014) was very low on volatility, and while in 2015 we have seen a little more volatility, it’s tiny in comparison with most other years. And even this little bit of volatility seems to still keep the index in a tight range. The number of 10% months (that is, times when markets have moved 10% up or down compared to a month back) are, for 2015 till now, ZERO.

image

This is going to be a fun year. While volatility scares away people, we must remember it is the one thing that causes markets to provide outsized returns. If there is no volatility, there is no potential of serious wealth or income creation through markets. Bring it on!