Stock markets are extremely volatile even its is not seen instantly. The volatility is hidden until black swan event but when it happens it is too late to change anything about it.
When volatility occurs the only choice is to accept it. But when you are not ready, then it is hard to accept it.
So how to know if you are ready for stock market volatility increase? Well watch for these:
Good luck with that!
When volatility occurs the only choice is to accept it. But when you are not ready, then it is hard to accept it.
So how to know if you are ready for stock market volatility increase? Well watch for these:
- Are you using debt capital?
- What are your cash reserves?
- How high is you financial leverage?
- How high is you operational leverage?
- What is your tactical plan for investments?
- How risky is allocation of your investment portfolio?
Good luck with that!