Volatility showing no signs of falling in the short term

Market volatility is rising, and is close to the levels reached in 1987 and 1998. That is the conclusion drawn by recent Salomon Smith Barney research into the characteristics of the FTSE 100. Using five-day moving averages, it has found that the number of stocks that move by 5% in either direction on a single trading day has fluctuated between 20 and 30 since February. On some days it has topped 40 stocks. The average figure for 1999 was 10. According to Salomons, this is a near-historic high beaten only by 1987 and 1998 - years which saw equity levels fall 56% and 33% respectively fro...