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Thursday, July 25th, 2013
rate of change

13 0725 zSPX rate of change

Given the move in U.S. stocks, it seemed like a good time to look at the historical rate of change in the S&P 500.

The chart covers the last fifteen years and shows the rate of change in total return in two ways.  Both use the number of settlement days:  250 approximating a year and 63 approximating a quarter.

The ghosted lines illustrate the respective standard deviations off of the mean using the daily series (although the data points shown are weekly closes).

As always with these longer historical charts, it’s interesting to see the patterns in different market environments.  The financial crisis always jumps out at you, but almost without fail the most interesting period is from 2004 to 2007, just before the stuff hit the fan.  (Chart:  Bloomberg terminal.)