The Cost every wise investor pays happily
Volatility is the Cost that you can never reduce if you want to invest in the stock markets. This is because markets are volatile. If by any means (there are many in pinstripe suits who peddle stories of reducing volatility), you manage to do so, you will also end up suppressing returns. This is common sense as well as the truth.
If you suppress volatility, you are suppressing returns to. Think about it. Volatility means values going up and down. If you suppress the downside, do you think the upside will be left intact as before? Nope. It isn’t how it works.
If you must invest like an investor, you have to welcome and embrace volatility.
This is the cost to pay. This is the tax to pay to be a successful investor.
You welcome the temporary fluctuations for permanent gains. Reduce the temporary fluctuations and you reduce permanent gains.
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