Are The Financial Markets Better Off Today Than 4 Years Ago?
I wanted to quickly share some of my original research from today on the markets since we’re getting into the thick of things going into November.
Are the financial markets better off now than 4 years ago?
The S&P 500 since 2014 has had essentially the same distribution of expected daily returns (fat-tailed normal) as it has for the last 50 years.
However, investors (you and I) have had to take on more risk for the same expected distribution of returns as intraday market volatility has significantly increased beginning in 2018.
So are the financial markets better off than they were 4 years ago?
Well, we’re about the same in terms of daily upside and downside expectations, only we’ve had to put up with much wilder and volatile swings getting there.
In other words…same returns, but higher risk as the waters have become choppier.
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