Is volatility actually a long-term investor's best friend?

Rapid and violent market swings feel uncomfortable to most, but as a long-term investor you have to learn how to stomach them and maybe even appreciate them - like some enjoy the scary rollercoaster rides in amusement parks, according to M&G's John William Olsen.

Volatility is, in fact, the long-term investor's best friend. It can provide exciting entry prices in great companies where the underlying fundamentals are often much more stable than their stock price. As volatility creates opportunity, investors should anticipate the worst; knowing what not to buy is equally important as knowing what to buy. If we can pinpoint areas of real fundamental risk or potential bubbles, it will make it easier to control risk and we can seek to avoid serious loss of capital. For example, with the end of the interest rate cycle in the US and possibly the e...