Share This Post

We continue to see what we call the “volatility index or VIX” increase. VIX is the ticker symbol and name for the Chicago Board Options Exchange’s CBOE Volatility Index, a popular measure of the stock market’s expectation of volatility based on S&P 500 index options. It’s level has more than doubled since the beginning of the year. For the prudent investor though, volatility is not risk; it in fact represents opportunity. We found this simple but effective graphic to share. It shows what risk really is when it comes to investing.

It is important to consider this perspective as we review our investment statements at this time. Our investment behaviour is the largest determinant of whether we achieve our longer term investment goals.

We also came across some further comments that we felt would be constructive to share. No doubt as news headlines may message a cause for concern…there will always be people who are paid in attention. They have incentives to scare you. In order to make themselves relevant.

That’s why pessimism often sounds more intelligent than optimism. Tell somebody things are going to even out in time. They won’t care much.

Tell somebody they are in danger. They will listen to you like there’s no tomorrow.

We need to be reminded that optimism is the simple concept that things tend to gradually get better over time even when things look bleak. It helps to explain why what you’ve done is not as important as how long you’ve done it for when it comes to investing.

(Credit: Jonathan Durocher)

Subscribe To Our Newsletter

More To Explore

Newsletters

Newsletter Q2 2022

Download the PDF Market Update The first half of 2022 was one of the toughest across all asset classes in recent memory, and while markets are showing some

Newsletters

Market Update: Volatility 2

Download the PDF Uncertainty and volatility continue in the global financial markets. We believe reasons include: Rising interest rates. Inflation. Supply chain issues. Geo-political conflict.

Perfect Timing family wealth logo

Perfect Timing Financial Corporation

 © 2021. All rights reserved | Privacy | Disclaimer

Mutual Funds Offered Through

 Investia Financial Services Inc.

The particulars contained herein were obtained from sources which we believe reliable but are not guaranteed by us and may be incomplete. The opinions expressed have not been approved by and are not those of Investia Financial Services Inc. This website is not deemed to be used as a solicitation in a jurisdiction where this Investia representative is not registered. Privacy Policy.

Perfect Timing family wealth logo
Don’t have an account? Create Account