"...although important problems certainly exist, the growth fundamentals of the United States do not appear to have been permanently altered by the shocks of the past four years." Ben Bernanke, Jackson Hole, Aug. 26, 2011
In the current environment, one can buy a 10 year US treasury bond and get paid 2.2% to hold it to maturity. One can also buy the 500 largest, most profitable and best financed companies in the US and get paid 2.1% in dividends that grow with inflation as well as the companies' future growth. This does not happen often: it happened last in 2008 and before that, 1958. This means that equity is cheap.
Though volatility is not always easy to live with, it is important to recognize when it can be used in your favour.
Tony & Peter