Smart Finance

Term

Volatility

How much and how fast a price swings. High volatility means big moves both ways; it is the price of admission for higher long-term returns.

In pesos: An investment of $10,000 MXN that can be worth $8,000 or $12,000 within a year is volatile; a CETES is not.

Where to go deeper

4/4 5 min Read Why the S&P 500 goes up or down What the S&P 500 actually measures, the four forces that move it, and why the daily number is mostly noise.

More terms on the same topic

Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.