Volatility Spike, Parts III and IV

by: Barry Ritholtz

On Thursday, we noted the increase in volatility via a Financial Post column. Saturday's chart porn comes via the NYT & Barron's.

First up, the NYT, with this gorgeous info-graphic on volatility -- note the peak in 2002, which marked the bottom of the Bear markets (Oct 2002/March 2003):

Chart courtesy of NYT

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Second, have a look at Dick Arms' column in Barron's. Dick believes the recent volatility surge is a Bullish sign.

I have a lot of respect for Dick, as his methodology is statistically based and empirically driven.

Even if you disagree with him, you can at least respect his methodology, which has zero cheerleading content in it.

Chart courtesy of Barron's

Previously:

Buy Volatility (January 14, 2006)
http://bigpicture.typepad.com/comments/2006/01/buy_volatility.html

Sources:
For Stocks, It’s the Wild West, East ...
FLOYD NORRIS
NYT, March 29, 2008

Whiplashed? That's a Bullish Sign
Now Is the Time to Buy, Not Sell
RICHARD W. ARMS
Barron's, MARCH 31, 2008