So far this year we’ve had 105 BMDs (Big Market Days when the market moves by more than 1% in just one day).
Bearing in mind we’ve still got two months to go, how does that compare to previous years?
2022 definitely isn’t normal. The long term AVERAGE is 52.5 BMDs, so 2022 has already been twice as ‘crazy’ as average, and this has been the sixth “craziest” year since 1953 (The other years were 2020, 2009, 2008, 2002 and 1974).
This is similar to COVID when in 2020 there were 109 BMDs. Although we should note that in 2020 there were 10 days where the market actually moved more than 5% (Ouch), and we’ve had none of those so far this year.
As we know, the market madness doesn’t necessarily subside quickly (historically) and so it might be best to prepare for another year in 2023…
