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5 Lessons About Volatility to Learn From the History of Markets

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In 2018, the re-emergence of volatility took many market participants by surprise.

After all, aside from a few smaller, intermittent spikes over the course of the current bull market, volatility has largely been in a long-term downtrend since the aftermath of the 2008 Financial Crisis.

Whether there is more volatility lurking ahead this year or whether the markets continue to calm, it’s worth looking at the last century of market history to put these recent bouts of volatility into context.

Learning From the History of Markets

Today’s infographic comes to us from New York Life Investments and it goes back in time to show us that the volatility experienced in 2018 was neither exceptional or unusual.

Here are five important lessons to learn from it all:

5 Lessons About Volatility to Learn From the History of Markets

With volatility back on the table again, investors are re-learning what it’s like to cope with a sometimes tumultuous market.

Higher volatility can be a source of uncertainty for even the most seasoned investors, but a look at historical data over the last century helps to ease these concerns.

5 Lessons About Volatility

Here are five lessons about volatility that we can learn from the history of markets:

Lesson #1: Volatility isn’t new
Volatility isn’t a new phenomenon – and it’s actually as old as the stock market itself. In fact, if you look at historical swings in the Dow Jones Industrial Average, you’ll see that many of the biggest ones were more than 80 years ago.

Lesson #2: Volatility is actually the status quo
In the last century, volatility has been ever-present in the markets, and between 1935 and 2018 the S&P 500 has seen:

  • 4,563 total days with +/- 1% price movements
  • 1,094 total days with +/- 2% price movements

That works out roughly to a 1% price swing every trading week – and a 2% price swing every month. Yet, over this lengthy time period, and after all of that volatility, the S&P 500 has grown by 25,290%.

Lesson #3: Any short-term volatility disappears with a long-term view
Daily price swings can feel like a roller coaster. But if you take a step back and look at the big picture, this volatility is just a blip on the radar.

For example, if you look at a chart of the S&P 500 from August 1990 to February of 1991, you’ll see that daily volatility was rampant. But zoom out to a 10-year chart, and these daily or weekly swings are barely noticeable.

Lesson #4: Volatility can be easily weathered with a resilient portfolio
Given that volatility has been around forever and that it’s extremely common, that makes it fairly unavoidable. Therefore, to weather periods of volatility, it is imperative to build a resilient portfolio by diversifying between different asset classes.

Certain assets are better at weathering periods of volatility than others. Here are some traits to look for:

(a) Low correlation with the market
These assets can zig when others zag, making them a valuable hedge (Examples: Gold, alternative assets, municipal bonds)

(b) Generates cash flow
When times are uncertain, the market puts extra value on assets that are generating real cash flow (Examples: Stocks that pay dividends, or bonds that pay interest)

(c) Defensive or non-cyclical
During uncertain times, there are still companies with stocks that will thrive. They are usually bigger companies with conservative balance sheets and durable competitive advantages. (Examples: Quality stocks in healthcare, consumer staples, telecoms, REITs, and utilities sectors)

Lesson #5: Volatility reminds us that there is no reward without risk

Investing in stocks comes with risks, but it also comes with the best returns over time:

Asset TypeAnnualized real return, 1925-2014
U.S. Equities6.7%
Government Bonds2.6%
Cash0.5%

If stocks offer the best long run gains – and volatility is an unavoidable aspect of investing in stocks – then we must learn to accept volatility for what it is.

Even better, we must learn to build resilient portfolios that can weather any storm, while minimizing these effects.

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Markets

World Beer Index 2021: What’s the Beer Price in Your Country?

The global desire for beer prevails even in a pandemic. These maps compare the average beer price in 58 countries—just how much do we drink?

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What’s the Beer Price in Your Country?

View the high resolution of this infographic by clicking here.

Although fewer people have been able to grab a beer at the pub during this pandemic, the global desire for beer prevails. For example, sales of the Corona beer actually shot up in the past year, despite—or perhaps because of—associations with the coronavirus.

This World Beer Index from Expensivity compares the average price of a bottle of beer in 58 countries in a detailed map. Additionally, we show which countries spend the most on beer per capita, and just how much beer people really drink.

Pricey Pints: The Average Beer Price

Researchers calculated the average price of a typical bottle of beer (330ml, just shy of a pint) from well known brands via online stores and statistics database Numbeo. In addition, local beer prices were pulled from hotel and bar menus, and average values converted to USD.

In Qatar, you’d have to shell out $11.26 for a single beer, which would surely make for a really expensive night out on the town. In part, this is because in 2019, the Muslim-majority country introduced a 100% excise tax on top the previous sales price of all alcohol imports.

These steep prices are aimed at tourists—and with Qatar hosting the 2022 men’s soccer World Cup, there’ll be thousands of visitors in the country looking for a cold one at any price.

RankCountryCapital CityAverage Price of a Beer
1South AfricaPretoria, Bloemfontein, Cape Town$1.68
2UkraineKyiv$1.76
3ArgentinaBuenos Aires$1.79
4Bosnia And HerzegovinaSarajevo$1.96
5GhanaAccra$2.05
6TunisiaTunis$2.09
7GeorgiaTbilisi$2.30
8North MacedoniaSkopje$2.34
9ChileSantiago$2.40
10Czech Republic (Czechia)Prague$2.49
11RwandaKigali$2.52
12BrazilBrasilia$2.52
13HaitiPort Au Prince$2.66
14ColombiaBogota$2.72
15SpainMadrid$2.74
16PanamaPanama City$2.74
17Sri LankaColombo$2.77
18HungaryBudapest$2.84
19ArmeniaYerevan$2.96
20IndonesiaJakarta$3.17
21AzerbaijanBaku$3.18
22GuyanaGeorgetown$3.39
23BoliviaSanta Cruz$3.42
24KazakhstanNur-Sultan$3.44
25BelgiumBrussels$3.47
26TurkeyIstanbul$3.61
27MaltaValletta$3.65
28BelarusMinsk$3.72
29EgyptCairo$3.80
30IndiaNew Delhi$3.90
31CanadaOttawa$3.96
32AustriaVienna$3.99
33WalesCardiff$4.06
34NepalKathmandu$4.13
35ScotlandEdinburgh$4.18
36GreeceAthens$4.25
37PhilippinesManila$4.25
38PolandWarsaw$4.37
39MexicoMexcio City$4.46
40LithuaniaVilnius$4.55
41South KoreaSeoul$4.56
42NetherlandsAmsterdam$4.60
43GermanyBerlin$4.64
44MalaysiaKuala Lumpur$4.74
45United StatesWashington D.C.$4.75
46ThailandBangkok$4.82
47PortugalLisbon$5.06
48RussiaMoscow$5.08
49SingaporeSingapore$5.17
50DenmarkCopenhagen$5.20
51ItalyRome$5.83
52EnglandLondon$5.97
53JapanTokyo$6.16
54SwitzerlandBern$6.23
55FranceParis$6.39
56ChinaBeijing$7.71
57JordanAmman$9.40
58QatarDoha$11.26

At just $1.68 per bottle, South Africa has the lowest average beer price thanks at least partially to cultural norms of buying in bulk.

Cashing In: The Per Capita Spend on Beer

The price of a single beer is one thing, but which countries spend the most on beer itself? Germany unsurprisingly tops the list here with nearly $2,000 of expenditures per capita, bolstered by its strong beer culture and annual Oktoberfest celebration.

Germany also prides itself on the purity of its beer—the vast majority of brewers follow the Reinheitsgebot, centuries-old purity laws that broadly state that beer may contain only three ingredients: water, barley, and hops.

World Beer Index 2021 - Per Capita Spend on Beer 820px
View the high resolution of this infographic by clicking here.

Following closely behind is Poland, which spends $1,738 per capita. Meanwhile, the U.S. ranks eighth in the world for the highest spending on beer per capita at $1,554—beer is also the country’s most popular alcoholic beverage.

Getting Boozy: How Much Beer Do People Drink?

Using data from the World Health Organization, the visualization below also digs into how much beer is consumed around the world per capita.

The Czech Republic emerges on top in this regard, with 468 beers on average in a year—that works out to 1.3 beers per day. Spain and Germany are next with 417 and 411 beers, respectively.

World Beer Index 2021 - Per Capita Beer Consumption 820px
View the high resolution of this infographic by clicking here.

On the flip side, people in Haiti only drink about four beers yearly. This may be because they prefer something a little stronger—97% of alcohol consumption in the nation comes from spirits such as rum.

Beer has been around for over 7,000 years. No matter the beer price in your country, it’s worth raising a glass to the timelessness of this humble beverage.

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The Population of China in Perspective

China is the world’s most populous country. But how does the population of China compare to the rest of the world?

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population of china

The Population of China in Perspective

China is the world’s most populous country with an astounding 1.44 billion citizens. Altogether, the size of the population of China is larger than nearly four regions combined: South America, Europe (excluding Russia), the U.S. & Canada, and Australia & New Zealand.

Using data from the United Nations, this unconventional map reveals the comparative size of China’s population next to a multitude of other countries.

Note: To keep the visualization easy to read, we’ve simplified the shapes representing countries. For example, although we’ve included Alaska and Hawaii in U.S. population totals, the U.S. is represented by the contiguous states map only.

A Historical Perspective

Looking at history, the population of China has more than doubled since the 1950s. The country was the first in the world to hit one billion people in 1980.

However, in 1979, in an attempt to control the burgeoning population, the infamous one-child policy was introduced, putting controls on how many children Chinese citizens could have.

While the government eventually recognized the negative implications of this policy, it appeared to be too little, too late. The two-child policy was introduced in 2016, but it has not yet reversed the current slowdown in population growth.

YearChina's Population (Millions)Annual Rate of Growth (%)Median AgeFertility Rate
1955612.22.00%22.26.11
1960660.41.53%21.35.48
1965724.21.86%19.86.15
1970827.62.70%19.36.30
1975926.22.28%20.34.85
19801,000.11.55%21.93.01
19851,075.61.47%23.52.52
19901,176.91.82%24.92.73
19951,240.91.07%27.41.83
20001,290.60.79%30.01.62
20051,330.80.62%32.61.61
20101,368.80.57%35.01.62
20151,406.80.55%36.71.64
20161,414.00.51%37.01.65
20171,421.00.49%37.01.65
20181,427.60.47%37.01.65
20191,433.80.43%37.01.65
20201,439.30.39%38.41.69

The fertility rate has been consistently falling from over 6 births per woman in 1955 to 1.69 in 2020. Today, the median age in China is 38 years old, rising from 22 in 1955. Longer life spans and fewer births form a demographic trend that has many social and economic implications.

Overall, China’s young population is becoming scarcer, meaning that the domestic labor market will eventually begin shrinking. Additionally, the larger share of elderly citizens will require publicly-funded resources, resulting in a heavier societal and financial burden.

Strength in Numbers

Despite these trends, however, China’s current population remains massive, constituting almost 20% of the world’s total population. Right now 71% of the Chinese population is between the ages of 15 and 65 years old, meaning that the labor supply is still immense.

Here are the populations of 65 countries from various regions of the world—and added together, you’ll see they still fall short of the population of China:

CountryPopulation Region
🇺🇸 U.S.331,002,651North America
🇨🇦 Canada37,742,154North America
🇧🇷 Brazil212,559,417South America
🇨🇴 Colombia50,882,891South America
🇦🇷 Argentina45,195,774South America
🇵🇪 Peru32,971,854South America
🇻🇪 Venezuela28,435,940South America
🇨🇱 Chile19,116,201South America
🇪🇨 Ecuador17,643,054South America
🇧🇴 Bolivia11,673,021South America
🇵🇾 Paraguay7,132,538South America
🇺🇾 Uruguay3,473,730South America
🇬🇾 Guyana786,552South America
🇸🇷 Suriname586,632South America
🇬🇫 French Guyana298,682South America
🇫🇰 Falkland Islands3,480South America
🇦🇺 Australia25,499,884Oceania
🇳🇿 New Zealand4,822,233Oceania
🇩🇪 Germany83,783,942Europe
🇫🇷 France65,273,511Europe
🇳🇱 Netherlands17,134,872Europe
🇧🇪 Belgium11,589,623Europe
🇦🇹 Austria9,006,398Europe
🇨🇭 Switzerland8,654,622Europe
🇱🇺 Luxembourg625,978Europe
🇲🇨 Monaco39,242Europe
🇱🇮 Liechtenstein38,128Europe
🇮🇹 Italy60,461,826Europe
🇪🇸 Spain46,754,778Europe
🇬🇷 Greece10,423,054Europe
🇵🇹 Portugal10,196,709Europe
🇷🇸 Serbia8,737,371Europe
🇭🇷 Croatia4,105,267Europe
🇧🇦 Bosnia and Herzegovina3,280,819Europe
🇦🇱 Albania2,877,797Europe
🇲🇰 North Macedonia2,083,374Europe
🇸🇮 Slovenia2,078,938Europe
🇲🇪 Montenegro628,066Europe
🇲🇹 Malta441,543Europe
🇦🇩 Andorra77,265Europe
🇸🇲 San Marino33,931Europe
🇬🇮 Gibraltar33,691Europe
🇻🇦 Vatican City801Europe
🇬🇧 United Kingdom67,886,011Europe
🇸🇪 Sweden10,099,265Europe
🇩🇰 Denmark5,792,202Europe
🇫🇮 Finland5,540,720Europe
🇳🇴 Norway5,421,241Europe
🇮🇪 Ireland4,937,786Europe
🇱🇹 Lithuania2,722,289Europe
🇱🇻 Latvia1,886,198Europe
🇪🇪 Estonia1,326,535Europe
🇮🇸 Iceland341,243Europe
Channel Islands173,863Europe
🇮🇲 Isle of Man85,033Europe
🇫🇴 Faroe Islands48,863Europe
🇺🇦 Ukraine43,733,762Europe
🇵🇱 Poland37,846,611Europe
🇷🇴 Romania19,237,691Europe
🇨🇿 Czechia10,708,981Europe
🇭🇺 Hungary9,660,351Europe
🇧🇾 Belarus9,449,323Europe
🇧🇬 Bulgaria6,948,445Europe
🇸🇰 Slovakia5,459,642Europe
🇲🇩 Moldova4,033,963Europe
Total1,431,528,252

To break it down even further, here’s a look at the population of each of the regions listed above:

  • Australia and New Zealand: 30.3 million
  • Europe (excluding Russia): 601.7 million
  • South America: 430.8 million
  • The U.S. and Canada: 368.7 million

Combined their population is 1.432 billion compared to China’s 1.439 billion.

Overall, the population of China has few comparables. India is one exception, with a population of 1.38 billion. As a continent, Africa comes in close as well at 1.34 billion people. Here’s a breakdown of Africa’s population for further comparison.

CountryPopulation Region
🇳🇬 Nigeria206,139,589Africa
🇬🇭 Ghana31,072,940Africa
🇨🇮 Côte d'Ivoire26,378,274Africa
🇳🇪 Niger24,206,644Africa
🇧🇫 Burkina Faso20,903,273Africa
🇲🇱 Mali20,250,833Africa
🇸🇳 Senegal16,743,927Africa
🇬🇳 Guinea13,132,795Africa
🇧🇯 Benin12,123,200Africa
🇹🇬 Togo8,278,724Africa
🇸🇱 Sierra Leone7,976,983Africa
🇱🇷 Liberia5,057,681Africa
🇲🇷 Mauritania4,649,658Africa
🇬🇲 Gambia2,416,668Africa
🇬🇼 Guinea-Bissau1,968,001Africa
🇨🇻 Cabo Verde555,987Africa
🇸🇭 Saint Helena6,077Africa
🇿🇦 South Africa59,308,690Africa
🇳🇦 Namibia2,540,905Africa
🇧🇼 Botswana2,351,627Africa
🇱🇸 Lesotho2,142,249Africa
🇸🇿 Eswatini1,160,164Africa
🇪🇬 Egypt102,334,404Africa
🇩🇿 Algeria43,851,044Africa
🇸🇩 Sudan43,849,260Africa
🇲🇦 Morocco36,910,560Africa
🇹🇳 Tunisia11,818,619Africa
🇱🇾 Libya6,871,292Africa
🇪🇭 Western Sahara597,339Africa
🇨🇩 Democratic Republic of the Congo89,561,403Africa
🇦🇴 Angola32,866,272Africa
🇨🇲 Cameroon26,545,863Africa
🇹🇩 Chad16,425,864Africa
🇨🇬 Congo5,518,087Africa
🇨🇫 Central African Republic4,829,767Africa
🇬🇦 Gabon2,225,734Africa
🇬🇶 Equatorial Guinea1,402,985Africa
🇸🇹 Sao Tome and Principe219,159Africa
🇪🇹 Ethiopia114,963,588Africa
🇹🇿 Tanzania59,734,218Africa
🇰🇪 Kenya53,771,296Africa
🇺🇬 Uganda45,741,007Africa
🇲🇿 Mozambique31,255,435Africa
🇲🇬 Madagascar27,691,018Africa
🇲🇼 Malawi19,129,952Africa
🇿🇲 Zambia18,383,955Africa
🇸🇴 Somalia15,893,222Africa
🇿🇼 Zimbabwe14,862,924Africa
🇷🇼 Rwanda12,952,218Africa
🇧🇮 Burundi11,890,784Africa
🇸🇸 South Sudan11,193,725Africa
🇪🇷 Eritrea3,546,421Africa
🇲🇺 Mauritius1,271,768Africa
🇩🇯 Djibouti988,000Africa
🇷🇪 Réunion895,312Africa
🇰🇲 Comoros869,601Africa
🇾🇹 Mayotte272,815Africa
🇸🇨 Seychelles98,347Africa
Total1,340,598,147

Future Outlook on the Population of China

Whether or not China’s population growth is slowing appears to be less relevant when looking at its sheer size. While India is expected to match the country’s population by 2026, China will remain one of the world’s largest economic powerhouses regardless.

It is estimated, however, that the population of China will drop below one billion people by the year 2100—bumping the nation to third place in the ranking of the world’s most populous countries. At the same time, it’s possible that China’s economic dominance may be challenged by these same demographic tailwinds as time moves forward.

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