Historical Monthly S&P 500 Volatility Chart

In a recent article I wrote that the average stock holding period in the NYSE fell to around 7 months in 2007. In addition to this very low holding period, investors today must endure tremendous volatility in the markets. The chart below shows the S&P 500 volatility has changed over the past 33+ years:

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Source: Volatility – The Good, the Bad, and the Ugly by Rob Brown, PhD, CFA, Benchmark Plus Management, LLC.

Since the Black Monday of 1987, the volatility measure has exceeded the value of 100 seven times.

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