No Risk = No Reward: Why Volatility is the Price of Wealth
How the Stock Market’s Wild Ride Makes You Rich (If You Can Handle the Nausea)
“The path to long-term riches in the stock market is riddled with stomach-churning volatility.” – Sam Ro
Ah yes, stomach-churning volatility—also known as checking your portfolio after a bad market day and questioning every life decision you’ve ever made. But here’s the thing: volatility isn’t a problem—it’s the whole reason we make money in the stock market.
If investing felt as smooth as a Sunday drive, your returns would look like a savings account—a whole lot of nothing.
Who is Sam Ro, and Why Is He Stressing Us Out?
Sam Ro is a financial journalist and the founder of TKer.co, where he breaks down the markets and economy in ways that don’t require a finance degree to understand. He’s worked at Axios, Yahoo Finance, and Business Insider, which basically means he’s spent years explaining why people should stop freaking out over stock market dips.
What If Volatility Didn’t Exist?
Let’s imagine a world where stocks only go up. No crashes, no dips, just steady, predictable gains. Sounds nice, right? Well, bad news: that world doesn’t exist—and even if it did, you wouldn’t be making much money.
If investing was totally risk-free, everyone would do it, and returns would be garbage.
The reason stocks grow over time is because of the risk. No risk = no reward.
Volatility is like turbulence on a flight—annoying, sometimes terrifying, but part of the journey to an exciting destination.
Why Market Dips Are Normal (and Not a Sign of the Apocalypse)
The S&P 500 has dropped about 14% on average every single year since 1980, yet it still keeps going up over time.
Every major crash—the dot-com bust, the 2008 meltdown, the COVID crash—felt like the end of the world. But guess what? The market recovered. Every single time.
The best investors aren’t the ones who avoid dips; they’re the ones who don’t panic and jump off the rollercoaster mid-ride.
Selling at the Wrong Time = The Fastest Way to Lose Money
The worst mistake investors make? Selling in a panic.
🚫 “I’ll just sell now and buy back in when the market calms down.”
🚫 “Maybe I’ll wait for the perfect time to invest.”
🚫 “Let me just check Reddit real quick for stock advice.”
Bad ideas. All of them.
A study found that if you stayed invested in the S&P 500 from 1993 to 2013, you’d have seen a 9.2% annual return. But if you missed the 10 best days in the market?
Your return drops to 5.4%.
Miss the 40 best days? You’d barely break even.
Moral of the story? Timing the market is a myth. Staying in is the only way to win.
How to Survive Market Volatility (Without Losing Your Mind)
✅ Embrace the Chaos – The stock market is supposed to be unpredictable. That’s why it works.
✅ Zoom Out – Today’s dip is just a blip on a decades-long chart.
✅ Keep Buying – Dollar-cost averaging lets you snag stocks at a discount when the market is down.
✅ Turn Off the News – The media makes money by freaking you out. Don’t fall for it.
Investing isn’t about avoiding the dips—it’s about riding them out and coming out richer on the other side.
So next time the market takes a nosedive, don’t panic-sell. Take a deep breath, remind yourself that no risk = no reward, and go about your day. (Maybe even buy a little more.)
Next week:"The 4% Rule: Can You Retire on It? Or Will You Be Eating Ramen at 75?"