Crazy market volatility
Number of times in 2008 that the S&P 500 closed up or down 5% in a single day: 17
Number of times between 1956 and 2007 it did this: 17
source: Harper’s Index
So far this year we’ve added two to the tally including today’s stupendous 6.37% rise and several more above 4%. While these bear market rallies and falls don’t worry me too much I am concerned that too many people are trying to time the market bottom with what could be disastrous consequences for their finances. I especially hope that people have not been buying on margin.