Explain the effects of volatility?

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	Explain the effects of volatility? By The-Adviser.com -
SERVICES Money Management Portfolio Reviews 401(k) Rollovers Retirement Financial Plans Estate Plans College Savings Clients Only WHY US Benefits Available Services "Interview Us" Fee Information Disclosures Applications Clients Only THE COMPANY Background Philosophy The Press Policies Opportunities LINKS Home Page Related Links Stock Quotes	New York - In simple terms, volatility means price swings (or up and down movements) in prices of individual stocks or market indexes during a set period of time. Incorporating the effects of volatility in the design of your investment strategy is crucial. Consider the below: Logical Information Machines, a research firm based in Chicago, estimates that since 1945 the Dow Jones market index has increased or decreased at least 1% in a day about 2300 times or an average of 44 times a year. During those days, if you sold an investment of $100,000, volatility could have resulted in a difference of $1,000 up or $1,000 down. Some technical analysts believe that volatility is a precursor of a negative or bear market while other investors believe that it can also signal movements up. About Us The Independent Adviser Corporation is a 100% Independent and 100% Objective Financial Advisory Firm that writes buy-side investment research. Our network of independent Fee-Only Financial Advisers serves individuals, families and businesses. They provide financial planning services, tax advice and offer professionally managed asset accounts. They do not underwrite corporate securities nor do they sell any proprietary products. To find out more or get a FREE consultation Ask The-Adviser.com or call 1-800-ADVISER.	We don't charge sales commissions or earn investment referrals fees. Got an investment question? Ask The-Adviser.com Open a professionally managed account: Brokerage Accounts Traditional IRAs Roth IRAs 401(k) IRA Rollovers 403(b) IRA Rollovers College Savings Retirement Savings Hire The-Adviser.com Click here for our Top Ten Investment Picks Financial Advisory Services Money Management Retirement Planning Portfolio Reviews 401(k) Rollover Assistance College Savings Financial Plans
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