| Warren Buffett dismissed market volatility in the spring as “really nothing” to worry about | Volatility is a normal part of investing, emotions run high and it’s not easy to block out ‘noise’ | The online environment is saturated with high-octane commentary |
Despite challenges – the fallout from Liberation Day being the most significant in 2025 – global stock markets have demonstrated resilience. Renowned investing principal Warren Buffett dismissed market volatility in the spring as “really nothing” to worry about. He elaborated, “If it makes a difference to you whether your stocks are down 15%, you need to get a somewhat different investment philosophy.” Buffett added, “The world is not going to adapt to you. You’re going to have to adapt to the world. People have emotions but you’ve got to check them at the door when you invest.”
The overriding message is, volatility is a normal part of investing. Emotions run high and it’s not always easy to block out the short term ‘noise’ and focus on longer term goals, but investors who keep perspective, avoid knee jerk reactions and stick to their long-term plan are far better placed to ride out the turbulence.
The CBOE Volatility Index or the VIX® Index is a measure of the US stock market’s expectation of volatility based on S&P 500 Index options. Widely known as the ‘Fear Index,’ the higher the VIX® Index, the greater the level of fear and uncertainty in the market, with levels above 30 indicating tremendous uncertainty, levels above 20 regarded as ‘high’ and below 12 as ‘low’ volatility.
- In 2025, the VIX® peaked on 8 April at 52.33
- In early December (at the time of writing), the VIX® Index had moderated to around 16.19.
Did you know?
Oxford University Press has named ‘rage bait’ its 2025 Word of the Year – and no, they insist they’re not rage-baiting us with a two-word winner! The term describes online content deliberately crafted to provoke anger or outrage to drive clicks and engagement – and its usage has tripled in a year. It feels fitting. The online environment is saturated with high-octane commentary, often blurring the line between messaging and provocation – and adding yet more ‘noise’ for investors to tune out.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. It is important to take professional advice before making any decision relating to your personal finances. This document does not provide individual tailored investment advice and is for guidance only.
All details are believed to be correct at time of writing – 05 December 2025.
