Not what it used to be...

The DJIA closed down almost 300 points 25 March.  But before we go on about the market’s renewed volatility, we should do some math.  Bespoke Investment Group notes that with the DJIA trading above 18,000, a 100 point move is just 0.6%, or a “typical day for the market.”  That is a far cry from the mid-1990s, when a 100 point move was good for a 2% price change.  The upshot:  The next time you hear someone reference 100 point moves as an example of a pickup of volatility, remember that a 100 point move is not what it used to be.

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