Volatility

Several years ago,I watched a TV program arguing the ever changing world. It had used some data to prove that the world was changing faster than ever. It thought the world would alter even faster,by a mathematical function,in the near future.

Nowadays we can prove that theory in stock markets. The world is bounded altogether now.With crippling effect everywhere,one single stock market would be infected by a news happening far far away,and thus triggers reaction by near-by markets,forms a chain reaction and eventually leads to massive selloffs.

Due to the state-of-the-art technology,information can flow back and forth around the globe in real time,which can multiply the already contagious market fear and make people to overreact.

That is volatility. For us,volatity would not fade away,but would get to strengthen in this information age.