Market Monday #2: Volatility

This is the 2nd edition of my new weekly economics digest. You can read the first edition here. Owning businesses is tough, especially when you own stocks and face price volatility. The most successful investors ignore the noise of price voluntary and focus on the core aspects of the business that affect its long term profitability. Even that is not as easy as it sounds.

Quote of the Day

Screen Shot 2018-04-27 at 10.55.59 AM

Word of the Day

Voluntary exchange is “a trade between two people who agree to trade money for a product or service,” writes Steve Mariotti in The Young Entrepreneur’s Guide to Starting & Running a Business. Perhaps more important is his definition of the term’s opposite, involuntary exchange:

One person forces the other person to give up something and get nothing of value in return. Involuntary exchange requires force. Only one person benefits from involuntary exchange.

Chart of the Day

This week’s chart comes from The Atlas Investor, showing the dramatic rise in market volatility since the beginning of 2018.

Volatility

Read

Stock Market Way Ahead Of Economic Growth
William Koldus, Seeking Alpha, 04.27.2018

Ford Is About to Abandon American Sedans
Keith Naughton, Bloomberg, 04.26.2018

It’s a Bad Time to Stop Making Small Cars
Conor Sen, Bloomberg View, 04.26.2018

Warren Buffett Better Sell a Lot of Ketchup Fast
Craig Giammona, Bloomberg Businessweek, 04.26.2018

The Media Narrative Around Amazon Is Out of Control
Felix Salmon, Slate, 04.26.2018

50 Ways The World is Getting Better
Ben Carlson, A Wealth of Common Sense, 04.26.2018

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