Reblog: Why Investors Should Embrace Uncertainty and Volatility
I wanted a perfect ending. Now I’ve learned, the hard way, that some poems don’t rhyme, and some stories don’t have a clear beginning, middle, and end. Life is about not knowing, having to change, taking the moment and making the best of it, without knowing what’s going to happen next. Delicious Ambiguity.”
–Gilda Radner
In “The Hitchhiker’s Guide to the Galaxy,” author Douglas Adams writes that “we demand rigidly defined areas of doubt and uncertainty.” Nowhere has that become more obvious than in the recent action of stock prices.
Traders and investors now face a delicious ambiguity.
After an extended period of limited daily price changes, volatility and uncertainty have returned to our markets.
Yesterday’s 25-handle move up in the S&P 500 Index continued the pattern of uncertain and almost-random daily large price moves.
