Play on volatility

During times of high volatility, indices that were favoured earlier, go out of fashion.Incremental cash flows head to low volatile instruments.

Some argue, this has been the reason for rise in gold prices to USD 700/troy ounce.

But on careful observation, we realise how true this may be? Is past volatility, proof of what is in store? I seriously doubt it. Recent price action and market participation has pushed up the volatility in the bullion space too, and though ETFs would try their level best to make "volatility" as their pitch (along with correlations), I believe its in a transient phase and more funds investing in gold would fuel more gyrations.

A quote.......

I would rather die, than not work hard.

--- The Puissant.

Patience is an essential trait of a sound investor.

Last week, during my usual walk down the streets of Versova, observed that a family was carefully choosing the type of corn they desired to relish on a wet afternoon. (Admiring their knowledge of the same, which I am least equipped with! Not to mention that corn is fattening!!)They had the patience to choose the right one, negotiate and then watch it bake.

How many of us exhibit the same kind of patience and knowledge while investing in the markets? (Apart from bragging about operators, contacts and our victories)

I believe efforts should be channelised to improvise ratiocination and every mistake in the market, is an opportunity gained to enrich the same.