Why volatility is awesome

Share markets have been on a stomach-churning ride the past few weeks and many rookie investors will be experiencing losses for the first time after a boom 2020.

“It’s been pretty violent,” said Forager Funds portfolio manager Harvey Migotti.

“We certainly saw quite a bit of complacency developing in the market, a lot of retail investors investing in businesses that sound sexy on paper, whether it’s renewables or EVs or whatever else.”

Migotti told a Forager video that growth company valuations had “got ahead of themselves” and that the downturn was not a bad development.

“You needed this correction. I’m actually really happy for it because you had a bit of a rise in rates, a bit of a rotation into some of the…