Home > Research

Understanding market volatility

Fluctuations are a common feature of financial markets and investors are often able to benefit from rises in global markets. However, fluctuations – both positive and negative - can be sudden and dramatic, and can catch even experienced investors off-guard.

In turbulent financial times, it is important to understand the economics that underpin all markets - beyond short-term volatility - and to consider market movements from a longer-term perspective. For a clear explanation of current market conditions, read our Global Market Update (pdf).

 

Investment education

Our range of easy-to-understand documents discuss the nature of market volatility and what it means for investors. We hope they will help explain to you and your clients what can happen during volatile times and highlight the importance of a long-term investment strategy.

What drives equity returns?

This report explains why equities are a valuable part of any portfolio and why they have historically offered superior returns.

Long-term investing through the cycle

A discussion on how to achieve investment success by looking past short term market volatility.

Diversification and the risk/return trade-off

With any investment, there is always a risk of a fall in the value of your money. Diversification can help reduce that risk.

Market opportunities and long term savings plans

This report shows how emotions can affect investors’ judgement and demonstrates how a regular savings plan can help smooth out the effects of a volatile market.