Compound interest in the market

Perhaps, it is time to needle to people who in all throat shout that “HFT an era” and distribution of retail-traders introduced high volatility and instability on the markets. They still like to say that distribution of difficult derivatives, for example, of exotic options leads to increase in fluctuations in the primary market. Indisputable an argument Flash crash 2010 caused by HFT failure, and also, all known, “Global financial crisis” © which responsible were derivatives on mortgage bonds will be their – Cdo.Teper let’s try to understand why this so “obvious” conclusion. For this purpose, it is enough to look at DJIA chart in 100 years.

Here kind of and to the fool it is clear that earlier the market was “quiet and peaceful,” and in the last decades it is direct “wild and feverish.”
But, I suggest looking at one schedule. On the same, only constructed not in linear axes, and in logarithmic. It is necessary “to make even” identical percentage change of the market on the different temporary periods. In that case, we will see more objective dynamics of the index. The constructed schedule is given below.

In the top part linear axes, in lower logarithmic.
The similar schedule suggests an opposite idea. Namely that the market became “quieter” in comparison with the 20th century. It, in the trailer, easily is explained by the inflow of liquidity on all leading platforms and development of market making. Anyway, draw a conclusion, but it is necessary to understand that severe percent can easily confuse.