5 charts from the past week that tell an interesting story in markets and investing…
1) Volatility Returns
This was the largest weekly spike in the history of the Volatility Index. +135% (Note: VIX started in 1990).
2) Historic Decline in Dow
The Dow declined 13% over the past 6 trading days. Going back to its start in 1896, this was the 47th largest 6-day decline out of 35,538 data points.
In the last 75 years, the only periods with a larger 6-day decline in the Dow than today…
October 1987 (Crash), September 2001 (post-9/11), and October 2008 (Financial Crisis).
3) Yields Hit All-Time Lows … Again
History was made once again in the bond market.
1.65% on the 30-year and 1.13% on the 10-year.
4) Home Prices
It was another year of gains for U.S. home prices. Many overestimate housing appreciation over time, which has averaged 3.2% per year on a nominal basis, and 0.3% after inflation (since 1891).
5) Easier Fed
The market is pricing in at least 3 more Fed rate cuts by the end of the year.
And that’s it for this week. Thanks for reading.
Have a great weekend everyone!
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