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:
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.
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!
