Kobeissi Letter to rattled investors: volatility is normal and healthy

The Kobeissi Letter has a message for investors rattled by the trading session: this is what markets are supposed to look like. In a post on X, the market commentary account said volatility is simply normal and healthy, and framed the day's price action as proof that many have lost sight of that.

The account's argument is one of collective amnesia. Over the past four years, it says, a large chunk of investors grew used to smoother conditions and forgot that turbulence is a built-in feature of markets rather than a malfunction.

Kobeissi pointed to today's moves as the tell, calling them evidence that investors have forgotten how volatility works. The firm did not frame the swings as a warning sign, but as a reminder of the baseline investors should expect.

Looking ahead, the account said it expects an eventful fourth quarter. That's a broad call rather than a specific prediction, and Kobeissi said it will keep posting real-time analysis as the story develops.

For anyone who spent the last four years treating calm as the default, the takeaway is blunt: chop happens. Kobeissi's position is that shaking out investors who never priced in turbulence is a sign of a functioning market, not a broken one.