Over the past couple of years, stock market price
volatility has grown in crescendo. While this price variation can be
quite stressful and unnerving to many investors, volatility can often be turned
to advantage.
Since individual common shares normally trade in a tight
band of fair value, these price ranges are often overshot due to unrelated macro
factors. Therein lies the opportunity. Opportunistic investors who
are paying attention can often take advantage of these short term price
variations. Given that we expect 2002 to be both a stock picker's and
trader's market, we believe price volatility can become an interesting profit
centre for portfolio managers. |
