AMAZON EATING THE STOCK MARKET (EP.3)
The Rational Reminder Podcast
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The Risk Story of Volatility
On the topic of volatility I wanted to see what has volatility been like in the past. So I looked at the 10 year standard deviation for each decade starting in 1926. From 1926 to 1936 standard deviation was high. Every other decade pretty close in the sort of 16-17 range. The angle return could swing plus or minus that amount 65% of the time. It's really a price story. If you own all the small caps and they stop being small caps, which some of them will,. And you rebalance out of them into more small caps. You're always running the same machinery. When I explain this to people they get it. It makes sense. Stocks and bonds
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