How volatile are the stock markets right now comparing to previous financial crises?
I've calculated the volatility of the Dow Jones index since its very beginning in 1896.
Generally speaking, volatility is often associated with big swings in either direction.
The stock market volatility is an indicator for the levels of uncertainty, nervousness and fear.
As you can see in the graph, although we are only at beginning of the Coronavirus crisis, the Dow Jones is already in the 3rd most volatile period in the last 124 year (way before the infamous 2008 financial crisis).
How long lasted each historical crisis?
1901 Panic (the first stock market crash): ~3 years
1929 The Great Depression: ~4 years
1962 Flash Crash (The Kennedy Slide): ~2 years
1987 Black Monday: ~2 years
2001 Sept 11th: ~2 years
2008 Financial Crisis: ~3-4 years
2020 COVID Crisis: what is your prediction?