Here’s a look at some different time periods the number of days the S&P 500 has moved up or down more than 5% during the trading day:
1950-2000: 27 days
2000-2006: 7 days
Jan. 1-Sept. 30, 2008: 20 days
Since Oct. 1, 2008: 22 days
This data suggests a follow-up:
- Is the real economy moving that much faster just this past year? or
- Are financial markets responding to new data that much faster? or
- Are the financial markets untethered from the real economy?
I don’t know that anyone knows the real answer yet.