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"Calm Before The Storm?" Dow's 2015 Range Crashes To Lowest Ever
The Dow's volatility is dead... long live The Dow's volatility.
2015 is now officially the least volatile (lowest trading range) in stock market history...
After 157 trading days, the Dow has traded in a 6.44% range - the tightest range EVER!
Source: @RyanDetrick
As Nassim Taleb recently wrote... This is the calm before the storm...
Western countries are increasingly displaying symptoms of looming instability as described by Nassim Taleb, the author of the The Black Swan, ever since the publication of an essay written with Gregory Treverton entitled “The Calm Before the Storm.”
In their essay, Taleb and Treverton highlight five characteristics that could help identify states that - while appearing stable on the surface - may actually be quite fragile.
“Fragility”, they write, “is aversion to disorder”.
The five characteristics they view as major factors in instability are:
- - centralised decision making,
- - lack of economic diversity
- - high levels of debt and leverage
- - absence of political variability
- - lack of track record in surviving shocks
With regards to centralised decision making the article points to the autocratic Arab states which while appearing strong on the surface quickly succumbed to the “Arab Spring” uprisings before degenerating into chaos - albeit compounded by external influences.
“Although centralization reduces deviations from the norm, making things appear to run more smoothly, it magnifies the consequences of those deviations that do occur. It concentrates turmoil in fewer but more severe episodes, which are disproportionately more harmful than cumulative small variations.
In other words, centralization decreases local risks, such as provincial barons pocketing public funds, at the price of increasing systemic risks, such as disastrous national-level reforms.”
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Grab your socks and drop your cocks cuz the year ain't over yet.
I thought it was "drop your socks..." etc.
Well, if I am going to grab my socks, I have to let go of what is in my hand.
in my neck of the woods its "drop your cocks and grab your socks" meaning stop fucking around and lets move...
well played...
Well said too.
Watching porn and clicking on ZH go hand-in-hand after all...
Or something in hand.
Whatever.
I'm not sure what that saying means, but I like it.
Oooo. I have just the sock for this scenario.
As Billy Mays once said, "Hold your dick steady and get your credit card ready."
Shut your whore mouth - Billy Mays
Who said this?
I discovered my wife in bed with another man, and I was crushed. So I said, 'Get off me, you two!'
"Drop you cocks and grab your socks! Get out of those racks, maggots!"
That's how I remember the words, anyway.
USMC MCRD Parris Island, ca: early-1970's
Thank god there ain't no manipulation going on.......
Centrally planned market
It is amazing that everything around us is crumbling and we're just sitting and watching to see what's behind door #3.
" We have such sites to show you "
Hellraiser: PInhead
stop watching and drop your cock. Didn't you get the memo >?
Its Yellen and the Hildabeast having sex naked.
Talk about being short.
That's a truly hideous image to have burned into one's memory!
Challenges lie ahead. A good time to take stock of yourself, not just your stocks.
This is when I'm glad I only own socks.
With my boot on the neck(s) of the Oligarchs, and the DOW, I stand in victory listening to their collective obfuscation. It will not be long before they are all scrambling for cover. Moreover, storms eventually pass, but an economic apocalypse is not just your average 'storm' that can be reflexively discounted by the previously insulated Oligarchs, or their progeny.
Yes, it's for real this time. Too many things slowing, crashing.
Noticed the same thing last Friday and went back to check. The last time the spread between the 10, 20, 50, 100 and 200-day moving averages on SPX was this narrow (22 points) was on January 3, 2008. Less than three weeks later, SPX had fallen 12.2%. And, of course, it fell another 42% before all the fun was over.
http://pebblewriter.com/coiling/
The centrally planned stock market will go up forever! QEinfinity!
Central Planning - because it worked so well for the workers' paradise that was the former Soviet Union. The irony is just to die for. And many will.