Embrace Volatility for Long-Term Equity Success

Staying invested in equities for the long term faces challenges primarily from short-term volatility and market panic, influenced by factors like inflation and geopolitics. In the coming year, geopolitical events are expected to be more significant than Federal Reserve actions. Investors must endure noise and volatility in the short run but should focus on the long-term potential of a diversified equity portfolio, aiming for a real compounded return of 6% after inflation over extended periods such as 10 to 20 years. While market crashes and drawdowns are inevitable, long-term investors recognize that enduring discomfort is essential to achieving wealth. Success in investing, much like in business, often stems from collaborating with those who possess complementary skills and knowledge.