How Much Should Stock Prices Move?

Clients often tell us the stock market makes no sense to them. How can the value of a company fluctuate 10% in a day? How can an entire stock market index, representing hundreds of stocks, move on average 1% per day? Clients view this type of volatility as something more akin to a huge casino rather than a rational, efficient capital allocation mechanism. You know what? They are partially right.... READ MORE