The S&P 500 is down 4.3% from its recent record highs, suffering a two-day dip.
Many of the most popular tech stocks, that have been driving most of this rally, are falling at a far faster rate.
Volatility is one of the three kinds of risks investors face, it’s actually the least important, according to Warren Buffett.
Volatility caused by money managers who speculate irrationality with huge sums will offer the true investor more chance to make intelligent investment moves.
He can be hurt by such volatility only if he is forced, by either financial or psychological pressures, to sell at untoward times.” – Warren Buffett (emphasis added)
That’s not to say that low volatility investing isn’t a valid strategy to pursue. In fact, lower volatility is one of the seven proven long-term ways to beat the market.
This market dip is currently threatening to turn into