Market Volatility Is Market Reality – August 2015 Edition
Volatility is THE reality of the market. If you are invested, then you are exposing your money to the potential for volatility. Anyone else who holds the same investment(s) as you are holding may want to sell them at any time for any reason which may drive the price down, unless there is someone else who wants to buy that investment at that time.
You should go into investing expecting volatility. But, volatility is NOT the same as risk. Risk happens when we mix volatility with panic. And, the fact that we have NOT had volatility for the last 1400(ish) trading days changed, for some of us, the expectations of volatility and therefore made those of us who were surprised, well, panic a little.
The less surprised you are by what is VERY normal volatility, the better off you will be as an investor.
And, when volatility occurs, be ready. Have a plan in place and be ready to implement it…