Some interesting facts from the increasingly financialized US markets (via Advisor Perspectives):
“Using the S&P 500 index as an example:
- Since the beginning of 2010, nearly 30% of trading days have had closing price changes of more than 1%. During the 1990s, only 20% of trading days had price changes of this magnitude.
- A trend toward larger intra-day price movements has also occurred. Since 2000, intra-day price changes of 4% or more have occurred nearly six times more frequently than they did from 1962 to 2000.
- From 1980 to August 2011, eleven of the twenty largest daily price declines have occurred during the last three years.”
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.