Volatility refers to the degree of price fluctuations in an investment over time. Assets with high volatility experience larger and more frequent price movements, while low-volatility assets tend to have more stable prices.

Volatility is often used as a measure of investment risk. Stocks generally have higher volatility than bonds, and emerging markets tend to be more volatile than developed markets.

Understanding volatility can help investors prepare for market fluctuations and maintain a long-term perspective during periods of uncertainty.