Will This Volatility Continue?
Courtesy of MICHAEL BATNICK, The Irrelevant Investor
The S&P 500 has been up or down 1% in 7 out the first 11 days (63%) of 2016. We’re only 5% through the year but I feel pretty confident saying this volatility will not persist. However if it does, the good news is that the last time more than 60% of all days was +/-1% was 1933, when stocks gained over 50%. If history rhymes, we could be looking at 2800 on the S&P 500 by the end of the year, so cheer up.
Michael Batnick, CFA is the Director of Research at Ritholtz Wealth Management, a NYC based RIA founded by Barry Ritholtz and Josh Brown.
