How is low volatility viewed compared to high volatility?

Low volatility is often viewed as emotionally sound for investors because it typically implies a more stable investment environment. When market prices fluctuate significantly, as seen with high volatility, it can be stressful and lead to emotional decision-making for investors. This stress can result in hasty decisions, such as buying high during market excitement or selling low out of fear, which can negatively impact an investor's long-term financial health.

On the other hand, low volatility usually indicates a steadier performance of investments, which can foster a sense of security and allow investors to make more rational, well-considered decisions. A less turbulent market often aligns with a long-term investment strategy, enabling individuals to stay focused on their financial goals without being swayed by short-term market movements.