The inherent volatility of share markets is for me a fascinating phenomenon. The underlying value of equities don’t generally change much in the short term yet in an in investor’s portfolio it is common for stocks to move 10% in a day or two and often more than that in a month. While the academics would consider this as quantifiable risk, it as simply the nature of markets or more accurately human behaviour. This volatility is what provides opportunities for astute investors.
Some time ago I saw a TV show or debate on “News”. The 24hr news cycle, or a particular subject can captivate a nation, dominate dinner party conversation and overshadow all other news yet be forgotten and discarded in a matter of days or weeks. This is true, just about everyone cannot remember the “news” from a couple of days previously! Markets and short term volatility of individual stocks certainly shows this same characteristics of the “news”.
We are all human after all.