To gauge market volatility, we often look at various historical equities or volatility (VIX) charts over various extended time frames.
David Rosenberg, the bearish economist over at Gluskin Sheff, just published a massive chart book. One of the charts is a bar graph capturing up and down moves over the last two years.
When you look at it this way, you can see how often someone in the market can often feel like he is losing. Conversely, you can also see how anyone outside of the markets might feel like they’re losing out.
Some commentary and recommendations from Rosenberg:
Heavy government intervention in the economy and central bank incursions into asset markets in the name of reflation have bumped against recurring deflationary pressures — causing intense market volatility. This is precisely why it is that in addition to a focus on bonds and low-beta income equity portfolios, exposure to long-short strategies that involve relative-value trades that mitigate the volatility is also totally appropriate in the current and prospective investment climate.
Photo: Gluskin Sheff