Investors have been told by advisers that the more volatile the market, and particularly the more volatile the stock, the better the ability to make money in the markets, This has become an axiom of sorts.
In fact, there is a technical terms used by professionals called “beta” which attempts to measure stock risk, a form of volatility to be expected.The higher the beta measurement, the more volatility and risk.
But the question is whether this strategy for investment works. It’s only one of over 1,600 strategies I’ve studied and I find the usual pros and cons. The upshot? No reason for higher risk to be an overwhelming factor for investors to follow. (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)
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