Quotes About Volatility

volatility benefits managers since they only get one side of the payoffs.

Retirees get less upside than downside.

An intelligent life is all about such emotional positioning to eliminate the sting of harm, which as we saw is done by mentally writing off belongings so one does not feel any pain from losses. The volatility of the world no longer affects you negatively.

The hidden harm of fragility is that you need to be much, much better than random in your prediction and knowing where you are going, just to offset the negative effect.

Não ser um peru" começa quando descobrimos a diferença entre estabilidade verdadeira e fabricada. O leitor pode facilmente imaginar o que acontece quando sistemas, sufocados pela volatilidade, explodem. Temos um bom exemplo: a remoção do Partido Baath em 2003, com a abrupta derrubada de Saddam Hussein e seu regime por obra dos Estados Unidos. Mais de 100 mil pessoas morreram e, dez anos mais tarde, o lugar ainda é um caos.

Nassim Nicholas Taleb

Unless something moves by more than its usual daily percentage change, the event is deemed to be noise. Percentage moves are the size of the headlines. In addition, the interpretation is not linear; a 2% move is not twice as significant an event as 1%, it is rather like four to ten times. A 7% move can be several billion times more relevant than a 1% move!

In the last fifty years, the ten most extreme days in the financial markets represent half the returns.

the feeling of false stability.

setting wealth back by several decades

Nassim Nicholas Taleb

absence of fluctuations in the market causes hidden risks to accumulate with impunity. The longer one goes without a market trauma, the worse the damage when commotion occurs.

You do not have to be a rocket scientist to know that it is hard for a market to keep going up when more and more people are getting out.

Had the mission system proved successful—and by the 1830s it had had more than sixty years to do so—a steady stream of Hispanicized Native Americans should long since have been transferring into the civil population of California. This never happened. Either the Indians died off, or they became permanently missionized (which is to say, wards of the Franciscans), or they fled into the interior. Mission culture remained volatile

I think I'm different. I've got alpha, baby...I think I can find the profits of surprise, the yield of real knowledge. Everyone says that, of course, but most investors are all beta--just volatility, just the random motion of the surf...they get killed. To generate alpha, I need help, direction, signposts, analysts, and sometimes even brandy-toting salesmen.

With currencies and interest rates far more volatile than the economic activity that they guide, the horizons of investment and commerce had to shrink proportionally with real economic knowledge.

One of my rules was to get out when the volatility and the momentum became absolutely insane.

The outlook for the economy, as always, is highly uncertain.

Every few seconds it changes - up an eighth, down an eighth - it's like playing a slot machine. I lose $20 million, I gain $20 million.

Global capital markets pose the same kinds of problems that jet planes do. They are faster, more comfortable, and they get you where you are going better. But the crashes are much more spectacular.

Since 1970, relationships can be more volatile, jobs more ephemeral, geographical mobility more intensified, stability of marriage weaker.

Thought is not a gift to man but a laborious, precarious and volatile acquisition.

Relationships change even more than people. It's like two people changing. It's exponentially more volatile. Especially two teenagers.

bear in mind when trying to compare housing with other forms of capital asset. The first is depreciation. Stocks do not wear out and require new roofs; houses do. The second is liquidity. As assets, houses are a great deal more expensive to convert into cash than stocks. The third is volatility.