Thats bound to happen with investors, unfortunately they ride the volatility with their 'core shares'...Hopefully they benefit from the volatility by lightening up at peaks and going heavy at troughs, of course.
At the same time, those same people will fully benefit from a long stock rally versus a trader who will sell too soon ;). They will also benefit from long term tax benefits and so forth. Many people have full time jobs and can't be trading all day after all.
The last couple of years, with its extremely high volatility and massive fear-factor has been heaven for traders (versus investors). The high correlation between all stocks, taking down good companies along with bad when the market moves (baby with bathwater analogy), should start decreasing soon. People need to be aware that if things keep stabilizing going forward, traders will find much less 'fertile ground' to play their games ;). Just looking at the VIX downtrend indicates that over the past year.
-Fernando