: An asset can be highly volatile but low-risk if its fundamentals remain strong and the investor has a sufficiently long time horizon. Key Strategies for Staying Unperturbed
: The statistical measure of price fluctuations over time, often tracked by the VIX Index (the "fear gauge"). unperturbed by volatility pdf 2021
: Maintaining a cash reserve allows investors to act when volatility drives the prices of high-quality assets down. : An asset can be highly volatile but
: Rather than following a rigid plan, investors may dynamically rebalance their portfolios—selling high-performing assets to buy those that have dipped—to maintain their desired risk level. Psychological Resilience and Behavioral Finance unperturbed by volatility pdf 2021
A fundamental tenet of being "unperturbed" is distinguishing between volatility and actual risk: