The Uncertainty Paradox

• "Doubt is not a pleasant condition, but certainty is an absurd one." -Voltaire
• The market hates uncertainty
• Uncertainty:
  • An unchangeable condition of existence
• Investors are often willing to make the trade off of bearing some increased uncertainty for potentially higher returns
• When markets go up and down, many investors struggle to separate their emotions from their investments
• Long-term investor:
  • “People often ask the question, ‘How long do I have to wait for an investment strategy to pay off? How long do I have to wait so I’m confident that stocks will have a higher return than money market funds, or have a positive return?’ And my answer is it’s at least one year longer than you’re willing to give. There is no magic number. Risk is always there.” ​

Compass Financial Advisors