Economics and markets
Why volatility and downturns are part of investing
May 19, 2022
Stock investors find the volatility and downturns of market corrections unnerving. Chief Economist Joe Davis explains some of the reasons these market corrections occur and why they’re an integral part of the investing landscape.
Why volatility and downturns are part of investing


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Video length: 57 seconds
Video transcript:
Joe Davis: So why do market corrections occur? They're actually part of investing. They tend to occur, and when I say corrections, a decline of roughly 10% or so in the broad stock market. They could occur because of unexpected changes in inflation or interest rates. It could be disappointing earnings reports. But they're actually, again, part of the investing landscape.
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