While many seasoned investors see volatility as opportunity, some see volatility
as a reason to panic. After all, they've got a lot on the line. But the fact is, ups and downs in
the market are not unusual. It's how you read them that's important. That's where Fidelity can help.
We can help you see how volatility is the normal pulse of the market and while it should not be
ignored, it should also not be feared.
Expect the market to move up and down
The stock markets are never a smooth ride. They can go up one day and down the next. The good
news is that, historically, they have gone up over time.
Don't let a bump alter your strategy
Political instability, economic uncertainty, and even natural disasters can temporarily
affect the markets. But if your strategy is solid, you may feel more confident about your
ability to ride out the storm.
Take the long view
Jumping in and out of the market is seldom a good idea. Experience shows that a successful
strategy can be to take a deep breath and stick to your plan.
The Market Over Time
S&P 500® Index
CBOE Volatility Index®
(VIX®)
S&P 500® Index
The S&P 500 Index is made up of 500 of the most widely traded stocks in the U.S. and is
generally a good indicator of trends in the marketplace as
whole.
CBOE Volatility Index® (VIX®)
The VIX is the benchmark for market volatility and is used by stock and options traders
to gauge anticipated future volatility. No wonder some people call it the "investor fear gauge".
