You can tell what a volatile week it has been when, today alone, the Federal Reserve added $19 billion in liquidity in the morning, then another $16 billion, and then another $3 billion this afternoon to calm the financial markets.
The Dow closed this afternoon at 13,239.54. Psychologically, the July 19 record close of 14,000.41 seems far distant.
I've written before about how some traditional measures of risk may fail to identify the market wildness that lies in wait. Fortunately, broad diversification, balanced portfolios, and long holding periods can help investors deal with market fluctuations.
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