At more than six years in length, we are in the midst of the third longest bull market in modern history.1 But investor experience isn’t just about gains and losses. It’s also about how they are achieved. Volatility (or lack thereof) is a critical element for not only how investors experience the market but how they make portfolio decisions.
As measured by large daily market moves (+/- 1%), the market has been especially quiet in recent years. Compared to the years around the financial crisis, the last three calendar years (2012-2014) witnessed few big moves. Are we now on the cusp of a change in volatility? In the first quarter of 2015, we have already seen a major upturn in daily volatility.