Return of Volatility
The last week saw a return of volatility to global equity markets. While difficult to endure in the short term, volatility has historically been a friend to long-term equity investors. Corrections of ten to twenty percent are common features of equity performance, and in fact, often create opportunities for long term holders. 2017 was remarkable, not so much from a return perspective, but rather as a major statistical outlier in terms of very low volatility.