Investors Shouldn't Shy Away From Volatility 

Thursday, 22 Mar 2007 | 12:00 PM ET

Rafael Resendes, co-founder of The Applied Finance Group, told CNBC’s “Squawk on the Street” that market volatility is “part of the admission to be in the game” for investors.

Long-term, he said equities return about 9% a year, doubling an investor’s money in about eight years.

“If you want the higher returns that come with equities over time, you have to be willing to take some of those swings,” Resendes said Thursday. “The S&P 500 has been around for 50 years, but if you missed the ten best months over that 600-month run, you’ve missed half the gains over the cumulative period of the index.”

Market Volatility
Volatility has jumped in the past month, but it's still relatively low by historical standards, according to Rafael Resendes, Applied Finance Group co-founder. He talks strategy with CNBC's Mark Haines.

Resendes said it’s impossible to know when the market will pop, citing Wednesday 2% run in mid-day trading.

“When you look at the equity markets in general you still see a very interesting story,” Resendes said. “We see private equity snapping companies up. Historically, these guys have done a good job assessing value.”



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  • Carl Quintanilla is an Emmy-winning reporter and co-anchor of CNBC's "Squawk on the Street," broadcast live from the NYSE.

  • Simon Hobbs co-anchors the 10 a.m. hour of CNBC's "Squawk on the Street" live from the New York Stock Exchange.

  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

  • Co-anchor of CNBC's "Squawk on the Street," David Faber also is a co-producer of CNBC's original documentaries.

  • Rick Santelli joined CNBC Business News as an on-air editor in 1999, reporting live from the floor of the Chicago Board of Trade.