How to Use Volatility to Your Advantage

I was 7 years old when I rode my first roller coaster at Disney World.

I remember waiting in line for Space Mountain, anxious to prove to my older brother that I had the chops to handle it.

As soon as I sat down and we started moving…

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I proceeded to cry the entire ride.

(To this day, I’m grateful that the ride had single-file seating, otherwise my brother would still mock me.)

But when it was all over, there was a sense of relief followed by a rush of adrenaline…

After all, I didn’t die.

That same day, I rode Space Mountain another three times until my parents insisted that we move on.

My Space Mountain experience is not unlike investors’ experience with market volatility this year.

In late February and early March, many investors were anxiously checking their accounts, complaining to friends and family, and feeling like they could throw up at any moment.

But on the other side of it, they realized that they didn’t lose all their money (after all, the S&P 500 is down only a little more than 1% year to date). Better yet, they managed to pick up shares of their favorite companies on the dip.

Moral of the story? Volatility isn’t as bad as it seems. And if you can stomach it, you may even profit from it.

In Chief Income Strategist Marc Lichtenfeld’s latest State of the Market YouTube video, he breaks down volatility and explains how you can use it to your advantage – beyond trading stocks or a stock index.

Click here to watch the full video.

You may just find yourself getting back in line for this roller coaster.

Good investing,

Rachel

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