August 29, 2018

Stock Market Volatility

Is the stock market more volatile today than in past decades?
Ray E. LeVitre, Investment Adviser, CFP, Founder, Managing Partner at Net Worth Advisory Group addressed this question on July 5, 2018.
"Today it’s not uncommon to have the Dow Jones Industrial Average, a measure of large U.S. company stocks, swing up or down 100 points in a day. In fact, it’s not uncommon to have moves of 200-300 points in a single day. That sounds volatile, right? However, when we dig deeper we find there is more to the story."
LeVitre explores the numbers and provides tables to demonstrate his findings that
"current stock market volatility is similar to that of the past." So... "why does it feel so much more volatile? The reason is actually quite simple. The index is much larger now, so a 1% move up or down represents a far greater number of points."
Check out the numbers at: https://www.kiplinger.com/article/investing/T047-C032-S014-is-the-stock-market-more-volatile-now-than-ever.html 

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