What is “Market Volatility”?

👂Ever heard the term "market volatility" and felt a little uneasy? Let's break it down.

Simply put, market volatility is the degree to which the price of something changes – whether it's a share price, a property price, or the value of your investment portfolio. Think of market volatility like the price of bananas. One week they're a steal, the next, they're practically gold. That's just the market doing its grocery shopping. Now, why should this matter to you? Because within those ups and downs lie potential opportunities.

🤑Consider this: If you'd tucked away $10,000 in cash 20 years ago, it would be worth approximately $21,000 today. That's a solid doubling! But what if you'd invested that same $10,000 in a high-growth investment? You could be looking at a figure over $50,000 – a roughly 500% increase!

The difference? Volatility. Those market fluctuations, while sometimes nerve-wracking, are what drive higher potential returns. Instead of fearing volatility, think of it as a natural part of the investment journey. It's during those dips that opportunities can arise to buy assets at lower prices, setting you up for potential growth when the market rebounds. So, the next time you hear "market volatility," remember it's not a scary monster. It's simply the market doing its thing, and it can be your friend.

We’re locals, just like you, and we understand the unique needs of people living in Newcastle, Lake Macquarie, Port Stephens and the Hunter. Our team of expert Independent Financial Planners are ready to help you achieve your financial goals for the everyday Australian. Book a Complimentary call with Rick or Chris now at Finspire Advisers. Call 02 4072 4450 or email hello@finspire.com.au.

Chris Keating and Rick Latimore - Your Independent Financial Planners.