Market volatility is a reflection of investor emotions and uncertainty. It affects every portfolio.
## Causes of volatility
– Markets react strongly to news.
– Geopolitical tensions: wars, elections, trade disputes.
– Cause sharp stock swings.
– Amplify price movements.
## Measuring volatility
– VIX index: called the “fear gauge”.
– Historical volatility: looks at past price movements.
– Shows market expectations.
## How volatility impacts investors
– Short-term pain.
– buy equity lifestyle properties shares when others sell.
– Requires skill and discipline.
## Strategies to manage volatility
– Diversify across sectors and assets.
– Use stop-loss orders or hedging tools.
– Avoids emotional decisions.
**Conclusion**
Volatility is something to embrace, not fear. By understanding its causes and managing risk, investors stay disciplined.
