Скачать или смотреть 📈🚀 Volatility Around Elections 💼😲

📈🚀 It is no secret that volatility has picked up recently, but it may surprise you to learn that is a very normal occurrence during Presidential election years. Our psychology is wired for something called recency bias where we weight events that happen more recently with greater value than older ones.

💫💥This bias can lead people to give too much weight to the most recent information, even if it is not representative of the overall pattern or trend, especially when it comes to election year volatility. How many times have you heard the phrase “the most important election in our lifetime?” I’ll let you in on a little secret, you will hear this every 4 years. This chart measures the volatility during election years, represented by the blue line, compared to the normal market volatility, the yellow line.

💼😲 As you can see, since 1928, the volatility, as measured by the VIX, has increased, peaking virtually on election day, and then subsiding for the remainder of the year. This year has been no different and the volatility has been well within the range of the historical trends.

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www.doug-gibson.com