Volatility allows financial firms to make profits, as they plow money into the market while it’s temporarily down. That is why as individual investors, we need to take the long view. In the short term, the market is a voting machine, but in the long term, it is a weighing machine.
Wall Street rallied for a second straight day on Wednesday, led by gains in beaten-down financial shares after JPMorgan’s quarterly results.The major indexes each ended up at least 1 percent. The S&P 500 finished at its highest level in more than four months, while the Nasdaq registered its highest close of the year and the Dow industrials touched a more than five-month high.