Volatility is change fueled by fear or greed. Major shifts in political power, changes in legislation, and fundamental economic health are examples of highly volatile events. Volatility is two-sided. Extreme optimism prompts investors to bid financial markets up and extreme fear causes investors to sell in a rush, resulting in a market crash. Volatility is not a price nor an index, but rather a change in investor psychology due to large events that have occurred. History has shown volatility has not changed its course since Tulip Bubble Trouble of 1636. Click Bubble Videos below to see how investor psychology has repeated itself since 1636.
