{"id":10837,"date":"2014-09-08T01:45:00","date_gmt":"2014-09-08T05:45:00","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=10837"},"modified":"2014-09-08T01:45:00","modified_gmt":"2014-09-08T05:45:00","slug":"risk-versus-volatlity","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/","title":{"rendered":"Risk versus volatlity"},"content":{"rendered":"<p>Ben Carlson cites Howard Marks on the difference between volatility and risk:<\/p>\n<blockquote><p>Volatility is the academic\u2019s choice for defining and measuring risk. I think this is the case largely because volatility is quantifiable and thus usable in the calculations and models of modern finance theory.<\/p>\n<p>However, while volatility is quantifiable and machinable \u2013 and can also be an indicator or symptom of riskiness and even a specific form of risk \u2013 I think it falls short as &#8220;the&#8221; definition of investment risk. In thinking about risk, we want to identify the thing that investors worry about and thus demand compensation for bearing. I don\u2019t think most investors fear volatility&#8230;. <strong>What they fear is the possibility of permanent loss.<\/strong><\/p><\/blockquote>\n<p>Read more at <a href='http:\/\/pragcap.com\/a-role-reversal-for-stocks-and-bonds?utm_source=dlvr.it&#038;utm_medium=twitter'>A Role Reversal For Stocks and Bonds | Pragmatic Capitalism<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ben Carlson cites Howard Marks on the difference between volatility and risk: Volatility is the academic\u2019s choice for defining and measuring risk. I think this is the case largely because volatility is quantifiable and thus usable in the calculations and models of modern finance theory. However, while volatility is quantifiable and machinable \u2013 and can &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Risk versus volatlity&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37,53],"tags":[1888,3617],"class_list":["post-10837","post","type-post","status-publish","format-standard","hentry","category-active-investing","category-investor-psychology","tag-investment-risk","tag-volatility"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Risk versus volatlity - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Risk versus volatlity - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Ben Carlson cites Howard Marks on the difference between volatility and risk: Volatility is the academic\u2019s choice for defining and measuring risk. I think this is the case largely because volatility is quantifiable and thus usable in the calculations and models of modern finance theory. However, while volatility is quantifiable and machinable \u2013 and can &hellip; Continue reading &quot;Risk versus volatlity&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:published_time\" content=\"2014-09-08T05:45:00+00:00\" \/>\n<meta name=\"author\" content=\"ColinTwiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ColinTwiggs\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/\"},\"author\":{\"name\":\"ColinTwiggs\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5\"},\"headline\":\"Risk versus volatlity\",\"datePublished\":\"2014-09-08T05:45:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/\"},\"wordCount\":133,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\"},\"keywords\":[\"investment risk\",\"volatility\"],\"articleSection\":[\"Active Investing\",\"Investor Psychology\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/\",\"url\":\"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/\",\"name\":\"Risk versus volatlity - the patient investor\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#website\"},\"datePublished\":\"2014-09-08T05:45:00+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/thepatientinvestor.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Risk versus volatlity\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/thepatientinvestor.com\/#website\",\"url\":\"https:\/\/thepatientinvestor.com\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. Strategic. Unfiltered. \",\"publisher\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/thepatientinvestor.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\",\"name\":\"The Patient Investor Pty Ltd\",\"url\":\"https:\/\/thepatientinvestor.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1\",\"contentUrl\":\"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1\",\"width\":250,\"height\":250,\"caption\":\"The Patient Investor Pty Ltd\"},\"image\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\",\"https:\/\/www.instagram.com\/colin_thepatientinvestor\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5\",\"name\":\"ColinTwiggs\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g\",\"caption\":\"ColinTwiggs\"},\"url\":\"https:\/\/thepatientinvestor.com\/index.php\/author\/colin58s\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Risk versus volatlity - the patient investor","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"Risk versus volatlity - the patient investor","og_description":"Ben Carlson cites Howard Marks on the difference between volatility and risk: Volatility is the academic\u2019s choice for defining and measuring risk. I think this is the case largely because volatility is quantifiable and thus usable in the calculations and models of modern finance theory. However, while volatility is quantifiable and machinable \u2013 and can &hellip; Continue reading \"Risk versus volatlity\"","og_url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/","og_site_name":"the patient investor","article_publisher":"https:\/\/www.facebook.com\/profile.php?id=61572934660810","article_published_time":"2014-09-08T05:45:00+00:00","author":"ColinTwiggs","twitter_card":"summary_large_image","twitter_misc":{"Written by":"ColinTwiggs","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/#article","isPartOf":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/"},"author":{"name":"ColinTwiggs","@id":"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5"},"headline":"Risk versus volatlity","datePublished":"2014-09-08T05:45:00+00:00","mainEntityOfPage":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/"},"wordCount":133,"commentCount":0,"publisher":{"@id":"https:\/\/thepatientinvestor.com\/#organization"},"keywords":["investment risk","volatility"],"articleSection":["Active Investing","Investor Psychology"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/","url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/","name":"Risk versus volatlity - the patient investor","isPartOf":{"@id":"https:\/\/thepatientinvestor.com\/#website"},"datePublished":"2014-09-08T05:45:00+00:00","breadcrumb":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/08\/risk-versus-volatlity\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/thepatientinvestor.com\/"},{"@type":"ListItem","position":2,"name":"Risk versus volatlity"}]},{"@type":"WebSite","@id":"https:\/\/thepatientinvestor.com\/#website","url":"https:\/\/thepatientinvestor.com\/","name":"The Patient Investor","description":"Smart. Strategic. Unfiltered. ","publisher":{"@id":"https:\/\/thepatientinvestor.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/thepatientinvestor.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/thepatientinvestor.com\/#organization","name":"The Patient Investor Pty Ltd","url":"https:\/\/thepatientinvestor.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/","url":"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1","contentUrl":"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1","width":250,"height":250,"caption":"The Patient Investor Pty Ltd"},"image":{"@id":"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/profile.php?id=61572934660810","https:\/\/www.instagram.com\/colin_thepatientinvestor"]},{"@type":"Person","@id":"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5","name":"ColinTwiggs","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g","caption":"ColinTwiggs"},"url":"https:\/\/thepatientinvestor.com\/index.php\/author\/colin58s\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9tQ4n-2ON","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":20042,"url":"https:\/\/thepatientinvestor.com\/index.php\/2020\/03\/19\/risk-parity-funds-are-selling-gold\/","url_meta":{"origin":10837,"position":0},"title":"Risk parity funds are selling Gold","author":"Colin Twiggs","date":"March 19, 2020","format":false,"excerpt":"The risk parity strategy employed by large macro hedge funds is failing, forcing them to sell Gold and Treasuries when these are traditional safe havens in times of crisis. Risk parity uses risk\u00a0\u2014 usually defined as volatility \u2014 to allocate capital. The fund manager sets a targeted level of risk\u2026","rel":"","context":"In &quot;Gold &amp; Precious Metals&quot;","block_context":{"text":"Gold &amp; Precious Metals","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/gold-precious-metals\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16114,"url":"https:\/\/thepatientinvestor.com\/index.php\/2018\/02\/13\/market-volatility-and-the-sp-500\/","url_meta":{"origin":10837,"position":1},"title":"Market Volatility and the S&#038;P 500","author":"Colin Twiggs","date":"February 13, 2018","format":false,"excerpt":"It was clear from investment managers' comments at the start of the year \u2014 even Jeremy Grantham's meltup \u2014 that most expected a rally followed by an adjustment later in the year or early next year. Valuations are high and the focus has started to swing away from making further\u2026","rel":"","context":"In &quot;Stock Markets&quot;","block_context":{"text":"Stock Markets","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/stock-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":24409,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/03\/06\/sp-500-warns-of-elevated-risk\/","url_meta":{"origin":10837,"position":2},"title":"S&#038;P 500 warns of elevated risk","author":"Colin Twiggs","date":"March 6, 2021","format":false,"excerpt":"The S&P 500 rallied Friday despite rising long-term Treasury yields. Troughs in 21-day Volatility above the 1.0% level continue to warn of elevated risk. The price-earnings multiple based on highest trailing earnings (PEmax) has climbed to 27.55. The second highest peak in the past 120 years. Conclusion We continue to\u2026","rel":"","context":"In &quot;Stock Markets&quot;","block_context":{"text":"Stock Markets","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/stock-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16350,"url":"https:\/\/thepatientinvestor.com\/index.php\/2018\/06\/12\/sp-500-volatility-back-in-the-green-zone\/","url_meta":{"origin":10837,"position":3},"title":"S&#038;P 500: Volatility back in the green zone","author":"Colin Twiggs","date":"June 12, 2018","format":false,"excerpt":"Since my February 13th newsletter flagged rising market volatility, market risk has been at the amber level, with 21-day Twiggs Volatility fluctuating between 1.0 and 2.0 percent on the S&P 500. A large trough that respects the 1.0 percent level, as in 2015 below, would be sufficient warning to cut\u2026","rel":"","context":"In &quot;Stock Markets&quot;","block_context":{"text":"Stock Markets","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/stock-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6929,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/03\/10\/philip-maymin-why-financial-regulation-is-doomed-to-fail-library-of-economics-and-liberty\/","url_meta":{"origin":10837,"position":4},"title":"Philip Maymin, Why Financial Regulation is Doomed to Fail &#124; Library of Economics and Liberty","author":"Colin Twiggs","date":"March 10, 2013","format":false,"excerpt":"Philip Maymin highlights a problem with volatility: .....securities with historically low volatility tended to have almost twice as much subsequent risk, while those with historically high volatility tended to have almost half as much subsequent risk. For both the riskiest and least risky securities, therefore, historical risk is a statistical\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1249,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/10\/10\/stocks-volatility-is-worrisome-sign-wsj-com\/","url_meta":{"origin":10837,"position":5},"title":"Stocks&#8217; Volatility Is Worrisome Sign &#8211; WSJ.com","author":"ColinTwiggs","date":"October 10, 2011","format":false,"excerpt":"Many investors are entering this week with fresh hopes the worst is over, after last week's sudden stock-market rebound. But history suggests that in times of market turmoil, there is a risk that big, sudden gains like last week's will prove temporary respites before stocks fall again. Head-snapping volatility, both\u2026","rel":"","context":"In &quot;Stock Markets&quot;","block_context":{"text":"Stock Markets","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/stock-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/10837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=10837"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/10837\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=10837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=10837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=10837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}