Why Risk and Volatility Are Not the Same, and Why That Matters to You
Manage episode 395660036 series 3428540
What creates fear and anxiety when it comes to stock market investing? Usually, it's when the markets are behaving erratically. Put another way, it's when the markets are volatile. Or to put it yet another way, it's during virtually every short-term measurable time period.
Stocks are always volatile in the short run. But stock market investing should never be a short-term play. So why does volatility get all the headlines? The more important aspect of stock market investing should not be trying to manage volatility (because you can't); rather, it's about managing risk.
What's the difference, and why does it matter to you? Find out more from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's fascinating episode of Managing Your Financial Future!
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