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Understanding market volatility

" Investors dislike choppy markets but they should embrace them. Price swings provide opportunities for regular investors to buy more investments when they are attractively valued. Volatility can be your friend."

Tom Stevenson, Investment Director

Stock markets rise and fall for all sorts of reasons - interest rate hikes, geopolitical changes, company announcements... the list goes on. And while these movements might make your clients feel uncomfortable, they're part and parcel of investing.

Here are some things to help support your discussions with clients when volatility strikes. Although they may be of most use when the market outlook is uncertain, they highlight some general principles of investment which may be helpful to your clients at any time in the cycle.

Markets don’t wait for dawn to break

Our short summary considers how markets have historically pre-empted the economy and what this means for investors.

Diversification is more important than ever

2022 was a highly unusual year when nearly all types of investment fell in value. Our brief summary explains why this doesn’t diminish the case for diversification.

Guides for your clients

Managing investments in uncertain times

Volatility is inevitable in a healthy market, and every long-term investor will experience it from time to time. So, it’s important to be comfortable with the idea of seeing the market change.

Putting time on your side

Summarising for your clients the benefits of taking a longer-term view.

When doing nothing is best

Explaining why it is usually best to remain fully invested through periods of uncertainty.

Latest investment insight


Cashing in on investment markets

With cash having become more attractive over the past year, this article from Liontrust can help explain to clients the potential benefits of being invested in equities for the long term.


A fairy tale economy

Premier Miton’s Ian Rees questions whether a Goldilocks economy is a fairy tale too good to be true.


Third quarter Guide to the Markets

In volatile markets, having access to up-to-date information is essential to making informed investment decisions. So J.P.Morgan’s new Guide to the Markets will now be refreshed on a daily basis.


Understanding market volatility

Financial history shows that from time to time markets experience bouts of heightened volatility for many reasons. Fidelity’s interactive tools look at the past and highlight lessons.