Be Terrified

You are going to run into people who are so certain of what higher volatility means for the markets that it’s as if they are reciting their own name and phone number. Be terrified of their indefatigability about a topic like this. Imagine the sheer arrogance and borderline mental illness required for a person to assume that they can accurately foretell the actions of a hundred million investors around the world.

You will come into contact with investment professionals who give you direct, unflinching answers about what the impact of higher rates will be on the stock market. Despite the fact that a million other variables will simultaneously inflict their own unquantifiable influence on outcomes for each of the components of the Dow Jones, the S&P 500 and the Nasdaq Composite. Be terrified and slowly back away, for you are talking with an undeniably unscrupulous or insane person.

You will meet all sorts of people bearing rules, formulas and equations for why this thing should most assuredly follow that thing – as though there is some fundamental, physical law that can merely be looked up in a library and adhered to by anyone who bothers to search. Be terrified, for you are in discussions with the delusional and the deranged.

You may end up conversing with a person swearing by some rule of thumb or another as though any kind of constant can be applied to a complex, adaptive, biological system like the investment markets. The only response is to be terrified that someone could possibly not know better than to

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