What causes stock volatility
There are two causes of this volatility: 1. The arrival of the bear market. Here we were, enjoying the bull market’s new highs when – Wham! – the bear bursts in and knocks the market down. With all the dust in the air, we, in rose-colored glasses, could not see the bear – but his effect was certainly unnerving. Stock volatility may also be influenced by situations that are impacting the stock market in general. Market volatility can take place when consumers begin to lose confidence in the economy, or when political issues cause investors to become more conservative in their trading activity.