The end of a major trend is usually marked by a significant increase in volatility. This seems to be what is happening to the equity bull market that began back in 1982. It has weathered a number of storms over the years, as traders kept faith with the underlying trend. But this week’s Barrons, the US investment magazine, notes that the recent collapse has been marked by unprecedented volatility.
It points out that that there have been nearly 15000 trading days on Wall Street since 1950. And in all this time, there have only been 68 days when the Dow Jones has gained or lost more than 4% in a day (33 down, 35 up). Apparently, 28 of those days have occurred in the last 3 months. It seems that the Wall Street bull market may be joining the baby-boom generation, which sponsored it, in retirement.