Volatility is the Point
Why the ups and downs of markets—and life—are where growth happens
What if the worst part of investing is the reason it works?
Last week was pretty typical for the market—lots of ups and downs:
And in life:
Life is an endless series of ups and downs. There’s no way to avoid volatility.
And we wouldn’t want to anyway. What would life be without joy and ecstasy? And the lows—how could we grow as humans if we didn’t have challenges to face and overcome?
It’s the same with investing—to quote Ben Carlson:
“One of the reasons the stock market gives you good returns is because it’s so volatile.”
In markets, volatility means uncertainty, and investors expect to be compensated for bearing that uncertainty. That compensation is long-term returns. But knowing this doesn’t make it any easier in the moment.
We still have to white-knuckle through the fluctuations of the markets and our lives. One moment you’re uneasy, the next relieved, always wondering what’s coming next. I’ve certainly felt it watching my portfolio over the past few months.
There’s another way to look at it. Not as something to get through, but as an opportunity.
Volatility, in markets and in life, gives us repeated chances to notice how we react and build a bit more resilience each time. Not by avoiding the swings, but by actually feeling them—the discomfort when a stock drops, the urge to do something, the relief when things bounce back. You don’t need to fix those feelings. Just notice them. That’s the practice.
In life, that might look like a quiet meditation, a journal entry, or simply pausing before reacting. In investing, it’s staying the course with your plan through the chaos—letting the ups and downs happen, and remembering that the volatility is the point.
But it’s one thing to understand this idea, and another to actually live it when the swings are happening in real time.
So rather than just write about it, I tried something a little different.
I recorded a short guided meditation you can use the next time the market (or life in general) is yanking you around—give it a listen:
Guided Meditation: Feeling the Market’s Volatility
Thanks for reading, and take care.
- The Buddh-ish Investor
I’d love to hear from you! Email at Sangha@TheBuddhishInvestor.com or drop a comment below!
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Take home points
Volatility isn’t the obstacle to wealth—it’s the source.
Growth in life and investing comes from experiencing the swings, not avoiding them.
If you’re looking for more
A joyful, candid performance of John Prine’s ode to life’s ups and downs - “That’s the way that the world goes ‘round / You’re up one day, the next you’re down”