Carmignac's Saint-Georges: Why volatility is not to be feared

In the second of a three-part series, Didier Saint-Georges, managing director and member of the investment committee at Carmignac, takes a closer look at why volatility does not mean a red flag and the dangers of 'Turkey Syndrome'

Financial markets often undergo rapid, erratic swings that are neither large in magnitude nor clear in direction.  Such volatility is the tangible expression of investor uncertainty at a given point in time, and can be measured, by calculating the magnitude of asset price fluctuations. The art of risk management: Part I So asset managers often use volatility as a proxy for risk. But that has caused confusion in the minds of many investors. While it is true that volatility is a measure of uncertainty, investors often - and mistakenly - take it as a red flag. But in financial m...