Volatility is good for long-term growth. 

 

Volatility in capital markets is nothing new. Day after day, year after year pundits talk about volatility as if we are seeing it for the first time. The truth is that going back to the earliest days of capital markets there has been wild short-term volatility. Short-term volatility within capital markets is one of the key attributes that has led stocks to have superior long-term returns. If markets ever truly became less volatility over longer periods, we would expect long-term returns to be lower.