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Warren Buffett on Volatility

Warren Buffett on Volatility

February 02, 2022

Warren Buffett on Volatility

Offered by Rob Taylor

If you’re concerned about today’s market volatility, you might take some comfort from one of my favorite quotes by Warren Buffett.

“I would tell them don’t watch the market closely,” said the Oracle of Omaha.

Buffett’s quote was from 2016 when the markets were wrestling with Brexit, China’s economy, and, coincidentally, the Federal Reserve’s interest rate policy.

Fast forward to 2022, and rising bond yields, Federal Reserve uncertainty, and escalating tensions on the Ukrainian-Russian border all have taken turns rattling the markets.

Markets move in cycles, but after a period of solid performance like 2021, it’s easy to forget that pullbacks, corrections, and even bear markets happen from time to time. Some market watchers would even suggest down cycles are healthy in the long run.

But if you find yourself thinking, “this time, it’s different,” we should talk. Downtrends can be unnerving, and sometimes, they may cause you to rethink how you feel about market risk.

The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

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