Media attention may not always offer the full story and, in the case of volatility, says Nick Dewhirst, this is especially true; the word is completely misunderstood
As volatility is possibly the most hyped, demonised and misunderstood word in the investment dictionary, it deserves special attention. Hyped When something dramatic happens in markets, the media repeats the same message. Nobody knows what will happen next, but there is one thing you can be sure about - there will be volatility. Inevitably they ask experts why the dramatic development has taken place. To ill-informed outsiders that is news, so they extrapolate it into the future, whereas it is actually history already discounted in market prices. Indeed the moment where media hype pea...
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