S&P 500 Actual Volatility Hits 70 Year High, Over Half the Trading Days Move At Least 1%

S&P 500 volatility as measured by daily changes of at least 1% have soared since last summer’s credit issues emerged as a critical issue, and now stands at a 70 year high. Since the bear-market turnaround in 2002, the number of significant daily market moves has gone down from 49.6% to 11.6% in 2006, and was 12.9% for the first half of 2007. Then, with the emergence of the credit uncertainty, market volatility shot up to 38.6% for the second half of 2007 and now stands at 51.9% for 2008 - a level not seen since 1938.

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