Volatility has buffeted the markets over the last few quarters. Stock markets around the world have been hammered by the Ukraine war, inflation, interest rate increases, and the continued supply chain problems. Yet the usual safe haven – bond investing – has also been fraught, as bond prices also go down in value as interest rates rise. So what is a long-term investor supposed to do? Firstly, don’t panic. In this quarter’s white paper, we are focusing on the ‘normality of volatility’ and the importance of understanding fundamental value of assets when confronting volatility. We explore the human element: why do assets move so sharply above and below their fundamental value? We will take a 30,000-foot view of market forces to get some perspective on how common this kind of asset fluctuation is to markets. Fasten your seat belts, because we are experiencing a bit of turbulence as hot air trading gives way to a cold front of fundamental value.