More Volatility Please

Tensions in the Middle East might bring concern for some investors.

Just like other headline-grabbers like Trump’s Tariffs, or the Russia/Ukraine war, Covid etc etc etc.

But successful investors stay mindful about headlines to avoid distorting their thinking.

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Why?  Because they know short term volatility is the norm.  As are the subsequent recoveries which always occur.

With diversified stocks, volatility never means permanent loss.

In reality, wars and conflicts have a minimal impact on markets (see chart below).  Historically, they bring a short-term decline of 5.1%, on average – and take 47 days to fully recover back to previous levels.

Volatility doesn’t feel good.  But zoom out and it’s barely a blip …

How Volatility BENEFITS investors …

For more than 150 years volatility is the very reason stocks have returned 8-12% pa on average.  No matter what.

If stocks grew in a straight line, returns would be much lower.
It’s the dips and corrections that create the premium for owning great businesses.

And for Options, volatility directly increases our income.

The data doesn’t lie:  long-term investors are rewarded again and again.

That’s exactly why our mentees and I don’t fear volatility – we embrace it.

Every year the market hands us a handful of opportunities (see chart below).  Most people don’t take advantage.

• Great assets get marked down for emotional reasons
• Fear creates a sale
• Disciplined investors capitalise while others sell.  As Warren Buffett says:

“The stockmarket is a device for transferring wealth from the impatient to the patient”

Volatility is Normal:  The number of annual sell-offs, on average …

What if you still don’t love stocks?

That’s understandable. You may not want your entire portfolio in equities.

And you don’t need to have a stocks-only portfolio to achieve long-term financial security.

Which is why we built our GPi Framework:  for more cautious investors wanting a balance of Growth, Protection and Income.

With GPi, you don’t just rely on one asset class.  We combine assets that behave differently:

1. Stable government bonds
2. Gold – a great diversifier in times of stress
3. Options to generate monthly income regardless of market direction

The Result?
A portfolio that still compounds, grows, and produces income.  Still passively.  But with a smoother ride.

With the right structure, volatility and headlines don’t need to matter.  

In fact, they BENEFIT your long-term wealth and income.

For a brief chat with me about our Options and investment training, book a call with me here.

Always Remember:

• Time in the Markets always beats timing the markets
• Stay Diversified 
• Minimise those leakages:  Fees, Inflation, and Taxes
• Financial Markets are a great source of recurring income  
• ETFs, Balanced Funds and Options achieve all the above
• Being educated helps you outperform 99% of the population

… to ensure your investments work for YOUR financial freedom (not someone else’s)     

And … 

For more guidance, our Investment Academy will help you implement all of this in a step-by-step way.   

Thousands of people have learnt how to diversify and pound-cost-average into low-cost, set-and-forget ETFs & Funds for inflation-beating growth.  And Options to create recurring income.

Click here to learn about our Investment Academy

Finally …

– Don’t take the above as advice as it may not apply to you personally

– Your Capital is at Risk

– You may not be covered by the FSCS

– Anything mentioned in a podcast or in a previous article was valid at that time and may not continue to be now