Study: What Happens Next When The Stock Market Is Very Volatile

The stock market's high volatility right now is not rare. There were a lot of historical periods with high volatility. What's rare is that the stock market's high volatility right now was preceded by a period of extremely low volatility (i.e. 2017 – January 2018).

Here's today's study: what happens next when:

This is the first time in 1 year (252 trading days) in which….

For 21 or more trading days out of the past 42 trading days (2 months).

Here are the historical cases

March 26, 2018 (current case)

January 25, 2016

August 29, 2011

September 4, 2007

March 7, 2000

December 15, 1997

September 27, 1990

October 27, 1987

November 15, 1982

April 7, 1980

July 11, 1973

June 4, 1970

June 15, 1962

Let's look at these historical cases in detail.

*We are eliminating all the cases that occurred near a recession because the economy is nowhere near a recession today. U.S. economic growth is solid. The next recession is at least 1 year (12 months) away. The economy and stock market move in the same direction over the medium-long term.