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How Much Market Volatility Is Normal? Markets frequently encounter periods of heightened volatility. As an investor, you should plan on seeing volatility of about 15% from average returns during a given year. About one in five years, you should expect the market to go down about 30%, says Lineberger says.
Whether high or low volatility is better for stocks depends on the investor's investment goals, risk tolerance, and time horizon. For investors who are looking for short-term gains, high volatility may present an opportunity to make quick profits by buying low and selling high.