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Volatility 101: An Introduction To Market Volatility

FYI: Why are certain times more volatile than others?

In the short term, volatility is driven by changes in demand, which is largely related to changes in earnings expectations. These expectations can be affected by:

Earnings reports
New economic data
Company leadership changes
New innovations
Herd mentality
Political changes
Interest rate changes
Market sentiment swings
Other events (economic, political, etc.)


  • Don’t be passive in the face of volatile markets. After all, this is your money, and your future. Being comfortable with your plan and your portfolio are important, but so is knowing your tolerance for risk.
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