Quote

The reality is, risk is variable. Those in the financial world know it.

Properties have different characteristics, like companies, and the market throws up more opportunities because it is inefficient.

The more evident it is that a certain company is going to become the market leader in a big market space, then the higher the valuation goes because the risk has been dramatically reduced.

Markets love volatility.

As they grow, companies saturate their markets, become more complex and difficult to manage, and face larger and more entrenched competitors.

Economies are risky. Some industries rise, and others implode, like housing. Some places get richer, and others drop, like Atlantic City. Some people get new jobs that pay better, many lose their jobs or their wages.

More of the same will just produce more of the same: less competitiveness, less growth, fewer jobs.

It's important to understand how people perceive risk, and how that translates into investment behavior.

Fear tends to manifest itself much more quickly than greed, so volatile markets tend to be on the downside. In up markets, volatility tends to gradually decline.

Marketplaces by their nature tend to grow faster than most other companies.