Following a relatively calm period, the stock market has been increasingly volatile in recent weeks. Its decline has many investors wondering what’s in store for their portfolio. Fortunately, volatility is a normal part of investing, especially in stocks.
Data shows that on average, stock markets have similar returns after highs and lows. Therefore, the recent market changes show little indication of how it will perform in the future. Instead of increased anxiety, investors should experience appreciation for market volatility, as it reflects changes in capital markets.