Uncertainty is Underrated
For many people, uncertainty is something to avoid or at least mitigate. But what about the positive things that uncertainty can bring?
Without it, there would be no surprises, no joy in watching sports, and no 10% average annualized return on the stock market over the past century.
Let me explain that last one: If there was no uncertainty, returns would be predictable and there would be no difference between putting your money in a savings account or investing it in the stock market.
We’ve all lived through years like 2022 when the market went down a lot and years like 2023 when it went up a lot. The potential risk makes possible the potential reward. So thank goodness for uncertainty.