Weathering Volatility
READ THE FINANCIAL NEWS TODAY AND IT’S HIGHLY LIKELY YOU’LL SEE THE TERM “VOLATILITY” IN AT LEAST SEVERAL ARTICLES. While market volatility is a normal part of the investing experience, ever since the pandemic hit the world in 2020, volatility seems to have become the new norm for investors.
“Market volatility” is the fluctuation of the market, both up and down, and the rate of that change to the equity market’s overall value. The bigger and more frequent the value swings, the more volatile the market. For example, when the stock market rises and falls more than one percent over a sustained period, it is often called a “volatile” market.
