S&P 500 Plunged Most Since 1987, Gave Up in 18 Days the 42% Gains of Past 3 Years. Boeing Shares Collapsed | Wolf Street

S&P 500 Plunged Most Since 1987, Gave Up in 18 Days the 42% Gains of Past 3 Years. Boeing Shares Collapsed | Wolf Street

It’s not the drop that worries me, it’s the historic nerve-rattling Volatility.
What’s so concerning is not the 29% drop of the S&P 500; drops of this kind are sort of routine and part of larger crashes that recur every decade or so since the 1980s. The last two times, it led to sell-offs of over 50%. So that’s to be expected.

What’s concerning me – and what makes this such a dreadful harbinger – is the record-breaking, neck-breaking, nerve-rattling, immensely messy and chaotic volatility, the huge down-days followed periodically by a huge up-day, and the numbers are just gigantic and historic and mind-boggling, and they’re getting bigger.

Every one of the past six trading days was a move up or down between around 5% and 12%, including two moves over 9% followed by a 12% move back-to-back. This has never happened before:

via S&P 500 Plunged Most Since 1987, Gave Up in 18 Days the 42% Gains of Past 3 Years. Boeing Shares Collapsed | Wolf Street