The world is a turbulent place, and the current level of uncertainty is especially high.
The stunning events of the past two months evoke grief for the stricken, hope for the downtrodden and apprehension regarding the ultimate outcome of so many geopolitical and environmental challenges.
However, for long-term investors, it is useful to reflect upon the motive forces of global markets in order to place these proximate crises in perspective.
Market volatility has risen appropriately in response to the unrest in the Middle East and North Africa, and has accelerated with the news of the Japanese earthquake and tsunami. With the unfolding nuclear crisis in Sendai and military strikes on Libya, short-term swings in stock prices are further amplified in response to hourly news flow.
For many of us, it is difficult to keep a longer-term perspective and maintain a steady course with our investment plan. Yet it is crucial to do so and to avoid the temptation to overreact to temporal disturbances that may have relatively small long-run consequences.