Investors often regard market volatility as a bad thing. Actually, in some ways, market volatility is a result of more efficient markets.

Let me explain.

An efficient market is a market in which new information is rapidly reflected in stock prices. Today, largely because of the Internet, new information on a company is received quickly by all market participants, with subsequent price adjustments based on the news happening almost instantly.

Now those price adjustments can sometimes be rather dramatic. Still, as an investor, you want price adjustments to affect all investors equally. What you don't want are price adjustments that occur slowly over a period of time. Such delayed price adjustments work to the advantage only to the chosen few who have the market information ahead of time.

In some respects, the leveling of the playing field in terms of information is fueling some of this increased market volatility. With market pros and individual investors both being able to react quickly to new information, the price swings can be dramatic.

But let me ask you this - as an individual investor, would you rather not have such volatility if it meant one group of investors was getting information ahead of time? I think not.

Therefore, the "price" an investor populace pays for more open, efficient financial markets is increased volatility.

So get used to it. And be glad.

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