The Weekly Brief (22 February 2016) - J.P. Morgan Asset Management

The Weekly Brief (22 February 2016)

Contributor Global Markets Insights Strategy Team

Markets have had a tumultuous start to the year with global equities down nearly 10% year to date.

One simple way of measuring the recent volatility is by counting the number of days that equities markets have moved by more than 1% in either direction. In the first six weeks of the year the S&P 500 has moved by +/- 1% on 20 days, which is roughly three per week. This is more than in all of 1993 and 1995. At that pace this year would see 180 days with +/- 1% moves. That’s more than at the height of the eurozone crisis and financial crisis. Will these big swings continue? It is unlikely that markets will continue to gyrate with this magnitude and frequency. But with fears over global growth, turbulence in commodity prices and radical monetary policies globally, it is likely that 2016 will continue to be a rocky one for investors.

Number of +/- 1% movement days for the S&P 500

Source: FactSet, S&P, J.P. Morgan Asset Management; data as of 18 February 2016.

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The Weekly Brief (22 February 2016)