Stars and Returns

Amar Pandit , CFA , CFP

While there is no direct connection between the two words of the headline, metaphorically there is a powerful connection.

James Clear (Author of Atomic Habits) wrote, The brilliance of the stars would be invisible without the vast darkness of space behind them.

Likewise, the powerful compounding of the stock market returns would not exist without the volatility of the stock market.

Volatility is a necessary ingredient. And as I have mentioned before, volatility is not just about the stock market going down. It is also about the stock market going up.

Thus, do not wish away the difficult portions of investing and of life. They provide the contrast needed to appreciate the joyful moments, writes James.