Volatile markets can be stressful for investors, but this volatility can also be viewed in a more positive light. Rapid price changes show that markets are working as they quickly incorporate new information. Once you accept that the markets work and prices reflect available information, you can take a long term view of investing and tune out the daily noise. Sooner or later, the markets will test your resolve. Just as a personal philosophy helps you deal with adversity in other areas of life, a sound investment philosophy can help you withstand the ups and downs and stay the course.
