Good Evening:

“People are like stained-glass windows. They sparkle and shine when the sun is out, but when the darkness sets in, their true beauty is revealed only if there is a light from within.”
-- Elisabeth Kübler-Ross

Nothing is entirely predictable. The German physicist Werner Heisenberg, who came up with the Uncertainty Principle, discovered that even if every single initial condition is known, it is still impossible to predict with any fixed certainty the behavior of waves and particles. Likewise, chaos theory explains how even things on a bigger scale, like weather and the stock market, are not entirely predictable. They can’t ever be. Similarly, neuroscientists have shown us that the structure of our brain, and the nerve cells within it, also act with elements of randomness. A key defining feature of the universe is uncertainty. There is always a space for change, for the unknown. The universe and markets are an ever-evolving possibility.

In investing, it’s easy to be grateful for the power of markets when things are going well. But when the tide breaks against an investor—it happens to even the most seasoned veterans—how do we grow from the experience? Challenging markets can strengthen us.

We learn things about ourselves&nb...

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