I believe the last two days have shown why you need to keep investing (and stay invested) through the volatility.
Yesterday the market tumbled over 1% in reaction to the latest trade war tit-for-tat from US President Donald Trump, today it has gained quite a bit of that back.
I was close to buying one of my favourite US-focused listed investment businesses of Magellan Global Trust (ASX: MGG) or MFF Capital Investments Ltd (ASX: MFF) if they had stayed lower until I could buy shares (due to trading rules), but they are both up close to 2% today.
It seems that increased volatility is here to stay, at least while the Tweeter-In-Chief is in charge. The market seems very quick to recover from one bad day and send share prices back higher the following day.
This is definitely not a sign that you should start trading by buying on a down day and selling one day later. But, I do think it provides quick buying opportunities for investors willing to be brave.
It's impossible to know whether the trade war will be quickly resolved, start a global recession or continue on this unsure path until the next US election.
Share price movements are always uncertain, which is why we just have to be brave and believe things will work out okay over the longer-term, as they always have. Through the wars, through the recessions, through the disasters and everything else.
Investing in shares is nothing like the same bravery as being a firefighter. But investing when your senses and fears are telling you not to can certainly be described as bravery. Holding onto your shares through volatility is also a form of bravery. We need to fight against our natural impulses sometimes to generate better long-term returns.
Foolish takeaway
The market is there to offer us opportunities when they arise, it's best to ignore everything else that's going on in terms of day to day share price movements. Don't let movements dictate what you should do.
