Market Charts

Stock market volatility: What is normal?

05/22/2018

us_market chart_distribution of equity_0518

Heightened volatility served as one of the major talking points for the first quarter of 2018. While February’s 10% drawdown may seem large given the calm of 2017, taken in aggregate, this year’s volatility is not out of the ordinary. Instead of entering a new market phase where volatility should concern investors, we are re-entering a normal volatility regime.

 

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The S&P 500 Index is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic US economy through changes in the aggregate market value of 500 stocks representing all major industries. Investments cannot be made in an index.

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