This week I stopped by Reuters for a brief interview where I took some time to talk about consumer confidence today and what’s been happening in the markets, as well as when the Fed might hike interest rates. (See the video here)
One of the very first topics I was asked about: market volatility. If you frequently visit my blog or you’ve seen some of the topics I discuss on the LexION Capital website, you already know that market volatility is a subject I’ve discussed at length many times before; but it’s a topic that’s good to revisit.
I always tell my clients (particularly in times of increased volatility), that unlike what the 24-hour news cycle might have you believe, the markets don’t suddenly become volatile, they’re always volatile. That’s just the way the way the markets behave. And while we don’t like volatility when it leads the market downward, they can still be (and very often are) choppy even as they climb up.
We have to remember this when we start to see drops in the market, and this is something I often tell my clients.
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