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Take a Breath: Why Market Volatility Is Normal

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  Published in Stocks and Investing on Saturday, November 8th 2025 at 12:44 GMT by The Globe and Mail
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Take a Breath: The Stock Market Isn’t That Scary

In a world where headlines about sudden market dips and “black swan” events dominate headlines, it’s easy for investors—both seasoned and novice—to fall into a panic. The Globe and Mail’s recent feature, Take a breath: the stock market isn’t that scary, seeks to soothe those anxious nerves by laying out why market volatility is a normal part of investing and how a grounded, long‑term approach can turn fear into a strategic advantage.

1. The Nature of Market Volatility

The article opens with the observation that the stock market is inherently unpredictable. “When prices move, it’s not because the market is wrong—it's because new information is arriving and people adjust their expectations,” the piece explains. A series of short‑term price swings, the article notes, are simply the market’s way of digesting changing macroeconomic data, corporate earnings reports, and geopolitical events.

The writer highlights several key drivers of volatility:

• Economic data releases – Quarterly GDP numbers, employment reports, and inflation readings can push indices up or down by a few percent in a matter of hours.
• Corporate earnings – A missed earnings forecast can lead to a sharp sell‑off, while an earnings surprise can lift a company’s stock.
• Geopolitical events – Trade wars, elections, and military conflicts can ripple through markets worldwide.
• Monetary policy – Changes in interest rates or central‑bank communications can cause sudden reassessments of growth prospects.

In short, volatility is a natural signal that the market is processing new information.

2. History Shows a Trend Toward Recovery

To put current swings into perspective, the article surveys several major downturns: the 2008 financial crisis, the 2011 Eurozone crisis, the 2020 COVID‑19 crash, and even the early 1990s recession. In each case, the U.S. S&P 500 rebounded within 12–18 months. Even the most painful declines ended up being a small dip compared to the long‑term upward trajectory.

The writer cites historical data showing that the average annual return of the S&P 500 over the past 100 years is about 9–10 %. Even after excluding the 1987 crash, the average return climbs to nearly 11 %. This statistical backdrop helps investors see that while a dip may feel dramatic in real time, it is often a blip on a long‑term journey.

3. Practical Strategies for the Uncertain Times

The feature goes beyond historical reassurance and offers actionable tactics for managing a portfolio through volatility:

The piece stresses that none of these tactics requires “perfect timing.” Instead, they provide a framework that reduces the temptation to react impulsively to market swings.

4. Emotional Discipline: The Hardest but Most Rewarding Skill

A core theme is the importance of managing emotions. The article quotes financial psychologist Dr. Maria Lopez: “The stock market doesn’t care about your anxiety; it cares about fundamentals.” The writer illustrates this by telling the story of an investor who sold a portfolio during the 2020 dip and missed a 150 % rebound over the next 18 months. In contrast, a calm investor who stayed put reaped a 30 % gain in the same period.

The article offers a few quick emotional‑management tricks:

• Pause before you act – Wait 24 hours before making a trade after a news event.
• Keep a journal – Record the reasoning behind each trade to see if you were driven by fear.
• Visualize your long‑term goal – Picture the house, the retirement fund, or the education you’re building for.

5. Links to Additional Resources

The Globe and Mail piece includes several links to deepen readers’ understanding. A few of the most relevant are summarized below:

a. The Fundamentals of Stock Market Volatility (Link embedded in the article)

This companion article breaks down the statistical measures of volatility—standard deviation, beta, and the VIX index—providing clear examples of how they reflect the risk profile of different stocks and sectors. It also explains how to read a volatility chart, offering a visual cue for when a market is unusually jittery versus historically stable.

b. How to Manage Portfolio Risk During Volatility (Linked to a previous Globe and Mail feature)

Here, the author explains risk‑parity strategies and the use of hedging instruments like put options and inverse ETFs. The piece also discusses the pros and cons of active versus passive management during market stress, advising that a disciplined passive approach often performs best over the long haul.

c. Why Your Portfolio Matters More Than a Day’s Loss (An older Globe and Mail article)

In this retrospective, the writer revisits the psychological impact of daily market noise and argues that focusing on “portfolio health” rather than single‑day fluctuations reduces stress. The article cites studies showing that short‑term trading often leads to higher tax liabilities and transaction costs without delivering commensurate returns.

6. Bottom Line: The Market Will Work for You

The headline message of the Globe and Mail feature is simple: Volatility is a fact of life, not a crisis. The market’s long‑term trend remains upward, and investors who adopt a disciplined strategy that includes diversification, regular contributions, and emotional control are more likely to see those gains come to fruition.

By framing market swings as normal, contextualizing them within a historical narrative, and equipping readers with clear, actionable tools, the article gives investors a new set of lenses through which to view the roller‑coaster that is the stock market. For anyone feeling uneasy about a sudden dip or a headline of “market panic,” the takeaway is reassuring: breathe, stick to your plan, and remember that the market, while noisy today, is built to thrive over decades.