Should you move your money when markets get scary? Most people confuse temporary volatility with permanent loss. They are not the same thing. Volatility is the price of admission for long term returns. Permanent loss of capital is the real risk. Warren Buffett has never met anyone who consistently times the market. Missing just the ten best trading days halves your portfolio. Stay invested. Read the market temperature. Adjust your formation without leaving the field.

Risk is at the center of all investment returns. Do you understand it well enough to harness its power?