Volatility

This table provides data about the Nikkei 225. I count eight days so far in February with moves larger than 1%, some them much larger than 1%, the 8th, 13th and 17th in particular.

As some readers may know I missed the run up and I have no plans to add Japan to client accounts. While I can't defend being wrong about Japan (recurring theme: every manager gets things wrong) I can repeat something I have written before which is that this market is capable of a lot of volatility, more so than most developed markets.

If you look at, for example, the ISEQ Overall Index (Irish benchmark), one percent days are far and few between, there have been three one percent days all year.

I am a big believer in using differ sectors or countries and so on to manage volatility. Even if you don't buy into that, I think it is very important to know what kind of moves a stock might bring. This applies to long term investors as well as traders.