Although high volatility periods in the stock market can be quite worrisome, there are some important lessons that can only be learned during such periods. These lessons are important when considering the irrational responses many investors had in response to the short-term downturn which occurred between August 21 and August 25. Often, only when a downturn occurs do the principles come to light. One of the activities our firm was busily engaged in last week was tax-loss harvesting (#2 in the article link) which is a great way to offset any capital gains taxes associated with selling positions. In The Lessons in a Correction by Larry Swedroe, author of numerous books on investing, Mr. Swedroe provides a great overview of the kinds of things investors can learn (and as important, can have reinforced) during a period such as we experienced last week.