You are here

Beware of volatility - a durable decline is likely to come

UPS AND DOWNS: Some of the greater risk aversion occurs automatically, including among traders and investors who pursue approaches that condition portfolio construction on measures of overall market risk based on volatility.

STOCK market swings do not matter to most investors, precipitous drops in prices are acceptable if they are followed by sharp rises, and this remains true no matter how long the phase of heightened volatility.

If the above is your investing credo, you can ignore another roller-coaster