The Volatility Antidote

The Volatility We Can’t Control - Mr. Markets

Larry Fink and Ken Griffin haven’t taken the time to subscribe yet, so I can say this with confidence: you can’t control the market's volatility. Phew, glad I got that off my chest. Now, let’s talk about what we can control, because while Mr. Market is currently dancing with two left feet, there’s no reason we can’t waltz our way through life with a little more grace.

The Volatility We Can Control - Create Normalcy

We can control many aspects of our lives, yet the majority of us leave much to chance—whether it’s our diet (the example I’m going to focus on), our movement, or our sleep. When market volatility occurs, it’s easy to let that instability seep into other facets of life. Skipping the morning workout to read an article you’d typically dismiss, staying up late obsessing over the implications of the Asian markets—the list goes on.

But the reality is, we should be doing the exact opposite. When market volatility strikes, we should eliminate volatility in other areas of our lives to create normalcy. The more normalcy we cultivate outside the market, the better equipped we’ll be to handle the lack of it within the market.

The Volatility Antidote - Preparation, Consistency & Patience

Volatility has an antidote, preparation, consistency and patience.

Preparation - You need a plan. Proper preparation prevents poor performance. Geez, I sound like a high school football coach, but it’s true. You need to be prepared. For me, I keep a note saved on my phone with my grocery store non-negotiables. These are foods I always buy and items I’m never allowed to purchase. It creates an autopilot system for me, ensuring my the house is stocked with my favorite fruit instead of candy. So when my sweet tooth strikes, guess what I’m munching on? Spoiler: it’s not the candy.

Consistency - You need to stick to the plan. This is often the Achilles' heel—our inability to stay the course. There are far better writers than me who dive deep into the art of consistency Atomic Habits by James Clear is a great place to start.

Patience - You need to be patient, especially when it seems like the plan isn’t working. Patience is a simple concept but difficult to execute. I apply the same concept to my diet that many apply to markets: "zoom out." Day-to-day fluctuations shouldn’t overshadow the weekly and monthly progress being made. When in doubt, zoom out because sometimes all you need is a little perspective (and maybe a mango).

Trust the Process

In a world full of unpredictability, focusing on what we can control is essential. By preparing thoughtfully, staying consistent, and practicing patience, we can create a sense of normalcy that shields us from external chaos. While we can't control market volatility, we can manage our personal "VIX" and navigate life's fluctuations with greater resilience. Remember, when in doubt, zoom out and trust the process.

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