Dear Gary,
Thank you contributing to the discussion regarding this matter.
By way of contrast, I have included below some samples of volatility in early market conditions.
Between 1929 and 1933, when a new wave of investors entered the U.S. stock market, it also saw its largest volatility.
23 out of the 40 (57.5%) most volatile days in percentage terms in the Dow Jones Industrial Average’s history occurred between this period, 1929 to 1933 — with both intraday gains and losses just under 10% or well over.
In recent times, the DJIA hit a market low on March 6, 2009, having lost over 54% of its value since the October 9, 2007 high — a period of just slightly over 2 years. And that for what is considered to be an established and well-regulated market.
When I discuss stability in the context of cryptocurrencies, you will no doubt have noted that I talk of “relative” stability, which can be defined within contextual and specific time frames. I would invite you to also consider my other work, particularly in relation to the Sharpe Ratio, which discusses volatility and risk in more detail. I have included the link here for your convenience.
I thank you for taking the time to contribute your thoughts and to adding to the fervor of the discussion, because I believe that it helps with my work and aids an open and frank airing of the issues and concerns thereunder.
Whilst we may disagree on substantive points, I am always appreciative of the privilege to discuss views openly.
For this I thank you.
Any errors and omissions continue to be mine and mine alone.
Yours,
Patrick
