Carmine Fusco, owner of CLM Global Enterprises LLC in East Hanover, New Jersey, has a background in the financial sector spanning three decades of service at institutions such as the Bank of New York, Dean Witter, and PaineWebber. As a financial expert and finance MBA graduate from Seton Hall University, Carmine Fusco is also interested in the stock market.

Market volatility, characterized by frequent and significant price fluctuations, is a familiar phenomenon in stock markets. Seasoned investors appreciate the potential risks and opportunities market volatility presents, and prudently manage their portfolios to accomplish financial objectives. Novice investors, if they wish to be successful, should also develop the acumen to navigate market volatility through effective strategies.

While investors cannot control market volatility, they can manage their reactions to it. For instance, they can maintain their composure during periods of high market volatility, such as sudden price drops of 10-20 percent after а market high. With the awareness that various events, like global strife and natural disasters, can trigger market volatility, investors should avoid making decisions based solely on fear, as these events are often short-lived. Doing so can help protect their long-term portfolio returns.

Additionally, investors can view stock market volatility, particularly price drops, as а chance to invest in quality companies with a proven track record. In 2020, the stock market witnessed a bear market with a significant drop in stock prices. Shrewd investors leveraged this situation by purchasing S&P 500 index fund shares at a substantial discount from their market value just a month prior, thus positioning themselves to reap significant returns when the market eventually rebounded.