A version of this post first appeared on TKer.co
The word “uncertainty” gets thrown around a lot in discussions about the stock market.
And it’s not surprising. There is literally always something to be uncertain about. In fact, uncertainty defines the risk stock market investors take as they bet on a future that isn’t guaranteed. Uncertainty gives risk-tolerant investors the opportunity to buy stocks at a discount. Uncertainty is why the returns in the stock market tend to be relatively high.
But far too often, pundits will appear on TV or get quoted in a news article casually saying that “uncertainty is elevated” — when in fact uncertainty may be at normal levels. Because there is always uncertainty, and any implication that there can be periods with no uncertainty is ridiculous.
Of course, there are times when uncertainty explodes above typical levels. And they come with…
