Broker Check
The Pain of Market Volatility

The Pain of Market Volatility

January 12, 2023

The Pain of Market Volatility

Lance Armstrong always mentioned the worse weather conditions, the better for him.

Why? Because he knew everyone else hated it, and he could suffer better than the rest.

More Lance: Pain is temporary. It may last a minute, or an hour, or a day, or a year, but eventually it will subside and something else will take its place. If I quit, however, it lasts forever. 1    (Don’t get distracted. Heed the message.)

We have had a long placid period over the last several years.  We will likely return to “normal” which typically has meant a 10% correction annually plus a few 5% pullbacks.   Volatility is generally get triggered by tidbits of news of complex, dynamic, changing world.  See the attached chart provided by First Union.  It shows the annual highs/lows/close of the Dow.  Markets ebb and flow as they absorb the constant change of people living.

Keeping the focus: We tolerate the pain of market volatility because it’s a characteristic of the growth process.   We all have to think about longevity (long life and it’s costs) and impending inflation (it’s in the future).   It’s not just about today’s values but also about the future needs and values. 

These high stress / high news periods capture our attention and we suddenly become diligent in reading and listening to everything we can find.  We begin to see the complexity and realize our puny understanding.  It stimulates fear and feelings of “I need to do something!” And that’s when people  make mistakes….The actions are rarely disciplined, rational, skill or data-based. 

We NEED our investment partners during periods such as this.  They bring talent, training, tools, and dedicated time to the tasks.  Pause to appreciate their role. Relish your toughness to ride this through to see a better day.


Registered Representatives offering Securities through American Portfolios Financial Services, Inc. Member: FINRA, SIPC. Investment Advisory services are offered through American Portfolios Advisors Inc., an SEC Registered Investment Advisor. Waterstone Financial Services and American Portfolio Advisors are not affiliated.