Putting the market chaos into perspective
Empirical Finance Blog puts the recent market turmoil into perspective, analysing monthly returns over a longer period of time.
Mebane Faber does a similar analysis. He concludes that a move of 5% up or down in a day should be expected several times a year and a move of 10% up or down once in several years.
Not that this kind of analysis gives any kind of breakthrough insight, the most interesting thing about market chaos is usually the political repercussions.
