What is market volatility?
When investments move up and down (and back again), that is volatility. More specifically, it’s a measure of how consistently or inconsistently an investment or index has performed compared with either a benchmark or its own historical average.
We can talk about volatility of a single investment, like a stock, or an entire market. One important thing to know about volatility is that it’s a totally normal part of investing.
Past market behavior and investment performance does not guarantee similar or comparable future outcomes or performance. It is not possible to invest directly in an index. Investing involves risk, including loss of principal invested.