Don’t Turn Short Term Volatility Into Long Term Risk!

We live in uncertain and volatile times. Throughout history, stock markets have bounced around a lot. They go up and down sharply — day to day, week to week, month to month, year to year. Such volatility is a *feature* of stock markets, and it’s mostly outside our control. And yet — despite all this volatility — over long periods of time, the US stock market has been a tremendous engine for wealth creation. As investors, we should do our best to harness this wonderful wealth creation potential of stock markets — while at the same time not letting ourselves get affected too badly by day to day volatility. This is only possible if we position our portfolios for *survival*. That is, we should be able to comfortably survive “short term” volatility long enough to build “long term” wealth. Unfortunately, too many investors turn short term *volatility* into long term *risk*. That is, they make mistakes that cause them to lose their capital *permanently* during periods of volatility. What are some of these mistakes, and how can we avoid them? That’s the subject of this episode. Disclaimer: None of this is investment advice. Download the Callin app for iOS and Android to listen to this podcast live, call in, and more! Also available at callin.com