Why stockmarkets are so volatile

Stock markets in the developed world have delivered the best returns over the long-term (some 4% per annum over bank deposit returns), but if you are going to benefit from those superior returns then you had better have an investment plan that can handle the volatility. This means planning for volatility at the outset...


As I said at the outset, volatility is not the same thing as risk and mistaking volatility for risk can lead you to take a permanent loss rather than recognising the decline as likely a temporary one.

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