2021 Better: Unperturbed By Volatility Pdf
The core of this philosophy—which draws heavily from the book What I Learned About Investing from Darwin —is about ignoring short-term market noise to focus on long-term survival and compounding.
- Data limitations: The analysis is based on historical data from 2021, which may not be representative of future market conditions.
- Model assumptions: The PDF estimation assumes a normal distribution of returns, which may not hold in all cases.
- Asset selection: The selection of assets for this analysis may not be exhaustive, and other assets may have demonstrated similar stability in 2021.
- Is the company’s earnings power diminished over 5 years? (No.)
- Is the selloff based on rates or fundamentals? (Rates.)
- Has the long-term narrative changed? (No—digital transformation, AI, cloud still accelerating.)
- The 2020 Crash: In March 2020, the S&P 500 dropped roughly 34% in 23 trading days. By August 2020, it had recovered all losses and hit new highs. Investors who stayed unperturbed were made whole in months; those who fled to cash locked in losses.
- The Average Drawdown: While intra-year drops average 14%, the market has ended positive in the majority of calendar years.
Academic paper
– You might be recalling a 2021 working paper on volatility tolerance or portfolio resilience. Search Google Scholar for: "unperturbed" volatility 2021 pdf unperturbed by volatility pdf 2021
