By nature, we tend to have short term memories. With the housing bubble slowly fading out in the rearview mirror, investors have had calmer seas allowing for stomachs to settle. But with the end of last year and the start to this one investors feel 2008 creeping up on them.
The market is fickle and changes just as investors start to get comfortable again.
The word many people hear when we experience quick drops in the market like the past six months is “volatility”; because of this, volatility has developed a negative connotation. Truthfully volatility isn’t just a downward trend, it’s a change in market direction and is a function of a “normal market”.
Times where volatility is high can be stressful for investors but it can also produce buying opportunities.
“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.”
- Warren Buffett
Volatility is creeping back into the markets and just like a drop on a roller coaster, it might startle you but it’s just part of the ride. It always has been and always will be.
All the best,
Wesley R. Nicholson, Mike Allen and Aaron Everdyke
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