| Let’s start with an analogy: You give a dollar to a person, with a well-defined plan, to invest for one year. In the end, he needs to return the earnings or losses (minus any fees charged). In addition, he needs to update the market value every day. In this analogy, the dollar is held in a savings account for 364 days. At the end of every day, you receive a report that shows you have maintained the one-dollar value, plus interest. Given the volatility in the public equity market, the stability of this investment provides you comfort. On the last day, however, the manager takes your dollar and bets it on red. Volatility was always there—this was his plan all along—it just showed itself at the end. Continue Reading Best regards, The Auour Investments Team |
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