Wake Technical Community College Stock Market Volatility Discussion

Stock market volatility is arguably one of the most misunderstood concepts in investing. In simple terms, volatility is the range of price change stocks and bonds experience over a given period of time. If the price stays relatively stable, the security has low volatility. A highly volatile security hits new highs and lows quickly, moves erratically, and has rapid increases and dramatic falls.

Because people tend to experience the pain of loss more acutely than the joy of gain, a volatile stock that moves up as often as it does down may still seem like an unnecessarily risky proposition.

Have you been watching the stock market lately? Do you invest in a 401k plan or buy stocks in some other manner? How does the wild swings in the stock market and daily news cycle make you feel about stocks and bonds and investing overall? Is investing a good idea? Tell us what you think.