When you’re evaluating stocks as an investment, it’s super bad not to take volatility into account. Stocks do trend up, but over a period of a few years, that trend is comparable to the volatility. You should put that into your model, and simulate 100 possible outcomes for the stock market.
When you’re evaluating stocks as an investment, it’s super bad not to take volatility into account. Stocks do trend up, but over a period of a few years, that trend is comparable to the volatility. You should put that into your model, and simulate 100 possible outcomes for the stock market.