Yes, sudden large movements in stock prices are upsetting to individual investors who feel at the mercy of large institutional traders. But to paraphrase a common expression, “If you can keep your head when those around you are losing theirs, you do understand the problem.” The long-term investor can and should ignore short-term market volatility and not leave the stock market. The losers from volatility will be institutions that trade frequently in a futile attempt to time the market, not the steady investor who buys and holds for the long term.
