Market volatility is the change in value of an investment over time

There are many similarities between valuing an investment and valu​ing a home. First consider the current value of a home, which is typically based on how many buyers and sellers there are on the market. If there are more buyers than sellers the price will move up because of strong demand. The same is true for investment markets.

The current value of a home or investment is also determined by the general health of the market and actions and perceptions of other investors.

Typically markets experience more periods of ups than downs, so it’s important not to panic during times when the market is declining. Over time, markets tend to rebound and grow beyond their previous lows.