Understanding Volatility

What is Volatility?

Volatility refers to the price fluctuations of a particular item, such as an individual stock or a whole market or portfolio.

Stock markets aren’t the only market with fluctuating prices. Fresh produce, for example, may not be the same price from week to week, depending on the season or supply. Same with gas prices – when supply is plentiful, prices can drop, sometimes dramatically.

How much the price changes determines how high the volatility is for that item. If the price is fairly stable, butter for example, that item is said to have low volatility.

Higher volatility – and specifically market corrections – can be unnerving. Shorter-term declines can happen fairly frequently and may trigger the fear of a bigger market decline.

Wondering how it impacts your daily life as well as your portfolio? Explore the resources below.

Watch the Video

It can be scary when there’s volatility in the stock markets. But what is volatility and should we be worried?

What can you do during stock market volatility?

It’s important to remember that no one can predict exactly when the markets will rise or fall – or precisely how significant that change will be. But what we can control is how we react to those market events.

Here are a couple of tips for staying calm when market volatility occurs:

Portfolio Strategies
Mitigate Risk and Volatility

As part of a diversified portfolio, alternative asset classes or strategies that are less correlated to stocks and bonds may provide downside protection and insulate portfolios from unexpected market events and rising inflation.

What is Inflation?

Inflation has been a growing topic of concern for most investors, click below to learn more about the impact of inflation and strategies to protect against them.
Personal Finance
What is Inflation and Why Does it Matter?

Portfolio Strategies
Protect Against Inflation

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