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Be prepared for market volatility from "summary" of The Little Book That Beats the Market by Joel Greenblatt
When you invest in the stock market, you must be prepared for market volatility. This means that the prices of stocks can fluctuate wildly in the short term. These fluctuations can be caused by a variety of factors, such as changes in interest rates, economic data releases, political events, or even just investor sentiment. As a result, your portfolio value can go up or down by a significant amount in a very short period of time. It is important to understand that market volatility is a normal part of investing in stocks. In fact, it is this volatility that allows investors to potentially earn higher returns than they would from investing in safer assets like bonds or cash. However, it is also important to be aware that market volatility can be stressful and can lead to poor decision-making. If you are not prepared for market volatility, you may panic and sell your investments at the ...
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