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It seems like the Dow dropping 500-ish points in a day is the new normal, it seems to happen fairly regularly. It generally makes those losses up with massive g
by excalibur 8y ago
It seems like the Dow dropping 500-ish points in a day is the new normal, it seems to happen fairly regularly. It generally makes those losses up with massive gains on other days, which do make headlines, but they don't receive the same kind of attention. Regardless of whether it's up or down on a particular day, the underlying theme is that the market has become very volatile.
- slededit 8y agoWhen the risk free rate was zero, and bonds not much better - there where precious few places to park your money. Now people have options again and it clear the resulting risk-capital allocation is not going to be 100% stocks.
- prewett 8y agoSince the Dow is at 25k, 500 points is about 2%, which really isn't too unusual. It fluctuates about 1% a day. I wouldn't even say the market is "very volatile"; the VIX is only at 20, which while more than average for the past two years, is hardly unprecedented. Earlier this year it was at 37. But it definitely is somewhat volatile, I'll give you that.