There is a theory in marketing that you don’t sell someone a drill, you sell them the quarter inch hole in a wall.1 Taken further: you don’t sell them the hole in the wall, you sell them a picture hanging on the wall. Even still you don’t sell them the picture, you sell them the…
Month: July 2021
Portfolio on 7.20.21
A bit of volatility arrived this week, leading to a portfolio calling for a far lower stock position. Interesting, the up today was larger than the down yesterday. We don’t care if volatility is up or down, so even though today was a good day in stocks, the higher volatility is a warning sign that…
Volatility Clusters
Volatility Clusters. The concept often causes strange reactions in people. So many think the market is totally unpredictable, that no part of the market’s behavior can be forecasted. I believe this is essentially true for returns, but it’s not true for how choppy and bouncy those returns are. Volatility is partially predictable because it clusters.…