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.