How to lie with statistics . . .
- focus on very recent history
Newspapers often focus on the last few years
in discussing current conditions
On this basis, people would think stock volatility is unbelievably
high in the past year or so . . .
This is misleading when viewed from the perspective on the
longer history we have available to us
Compare the plots of rolling standard deviations from 2004-
2011 versus the plot from 1895-2011 . . .
Good news is that things seem to have settled down a bit now
(compared to 3 years ago)