Forbes – Friday\u2019s market activity was remarkable for one thing:\u00a0 the S&P 500 Index had a less than 1% peak-to-valley trading range throughout the day. In contrast, for the previous 66 consecutive trading days, the U.S. equity market had intra-day swings of greater than 1%.\u00a0 Wow!\u00a0 Talk about volatility.\u00a0 We\u2019ve never seen those kind of wild market ups and downs previously.<\/p>\n
We also recently witnessed what some would put on record as the shortest bear market in history.\u00a0 On Tuesday, October 4th, the S&P 500 Index traded at a price that was 20% below its May 2011 peak.\u00a0 20% down is generally called a \u201cbear market,\u201d albeit technically this term is defined by a closing price, not an intra-day price.\u00a0 What\u2019s lost in this noise is the fact that the S&P 500 Index is actually one of the best-performing global equity markets this year.\u00a0 Anyone who owns mid-cap, small-cap, European or emerging market equities felt the pain of price declines well in excess of 20% prior to October\u2019s rally.\u00a0 A bear market indeed.\u00a0 So what\u2019s the prognosis for global equities following this month\u2019s massive rally?\u00a0 More volatility.<\/p>\n