Kings of Wall Street.

The IPC™ Index on the S&P500: A Lesson On Risk.

Kings Of Wall Street

Some people like to refer to the financial markets as "Random" environments. It is understandable. After all, what do people do when they do not know something? Simple. They lable it as "bad" or "risky" or any other negative word they can think of. Luckily for me I grew up with a very limited vocabulary in terms of negativity.

My idea of Risk is the following: "Risk comes from not knowing what you're doing." - Warren Buffett.

But what happens when you do know what you are doing? What happens when you know something more than the average Joe? What happens when you are in control of Risk?

The image below shows a perfect example of being in control of risk. A perfect example because it shows that the markets are everything but a Random Walk. On the contrary, the financial markets are a very well organized environment for an elite of investors who are lucky enough to know what they are doing.