Current Issues in Economics and Finance
Has the Stock Market Grown More Volatile?
October 1996 Volume 2 Number 11
JEL classification: G10, G14

Authors: David Laster and Kevin Cole

The record number of fifty-point daily moves in the Dow Jones Industrial Average in 1996—forty-five in the first three quarters alone—has attracted considerable media attention. An analysis traces this phenomenon to two basic causes: the record level of the Dow and the return of price volatility to post-World War II norms following several years of low volatility.

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