Archive for April, 2019

Volatility is Misunderstood

This headline in an article in the Financial Post is typical:  Are quiet markets gearing up for a burst of volatility?

The import of this article, and others, is that stock market volatility is both unusual and bad.

Neither is true.  Here’s why.


As Nobel laureate Eugene Fama said, “There’s one robust new idea in finance that has investment implications maybe every 10 or 15 years, but there’s a marketing idea every week.”