[lordentropy]

If you have a long time horizon and invest in a broad-based index fund, why do you even care about short term volatility? If you need to withdraw money within the next few years, then yes volatility matters. But in that case, you might be better off not investing in stocks and go with less risky stuff.

[steveBK123]

Everyone has a different definitions of short & long term, and the resulting volatility appetite.

Volatility is also a lot easier to read and pontificate about than to experience in real time. What people do during draw downs is often emotion driven and for people who have never been through it, it's hard to infer from textbooks.

And there have been periods where the market has been down for near a decade. If you put a lump sum at the 2000 peak, you wouldn't be back to even until the 2007 peak.. at which point it promptly crashed and didn't make back to even until 2013. (+/- a few years when you factor in dividends). Similar for 1973/1980/1982.

Slow grind downs like the GFC are harder to experience as you watch slow losses pile up day after day for near 18 months.

[brnaftr361]

I dunno MS took a really long time to recover it's peak. Even if you didn't buy the top it stayed flat for a very long time. Not that it happens in every instance, but at some point in managing it you have to consider opportunity cost, call a loser a loser, and pull out. 15 years to break even and that's without taking inflation into account.

[stouset]

Playing individual stocks is a fool’s game. Yes, the random stock you pick could turn out to be a terrible investment for any number of reasons.