Monday, June 27, 2016

Stock market perspective

Recent volatility

Percent down from recent high to closing low.

-7.4%    October 2014
-4.9%    December 2014
-12.2%  August 2015
-11.9%  January 2016

-5.5%    June 27 2016 7:20 am PT

I don't make any predictions how far this decline will go.  The markets had been taking a more defensive structure starting months before this sell off.  Bonds started climbing a year ago.  Utilities started up six months ago.

Note that in October 2014 the intraday low was -9.4%.  January 2016 intraday low was -14.1%.

Volatility has been going on since late 2014 and is expected to continue. The trouble with these down drafts is that first it takes a down draft before the market goes even lower.

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