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> volatility went up, but it could've easily gone down. I don't see how volatility could have gone down. Maybe explain?
by MiroF 6y ago
> volatility went up, but it could've easily gone down.
I don't see how volatility could have gone down. Maybe explain?
- deleted 6y ago[deleted]
- mettamage 6y agoWell, if I understand it correctly (my knowledge is too shallow) this happened with a couple of previous crashes. After the first huge volumes of sales, trading would die down because no one had faith in the economy and the stock market. Died down trading = low volatility
- MiroF 6y agoThe great thing about claims like these is you can fact-check them. https://www.macrotrends.net/2603/vix-volatility-index-historical-chart https://www.macrotrends.net/2603/vix-volatility-index-histor... Here it appears that volatility went up, up, up for 2008 - then died back down to pre-crash levels with occasional spikes. I don't see volatility going much below what it was before the crash. You can see a similar pattern in 2020. > After the first huge volumes of sales, trading would die down because no one had faith in the economy and the stock market. I would honestly be shocked if this was a real thing - if a ton of people stopped trading, it would cause other people to trade on the inefficiencies that creates.