A happy, smiling BP analyst in an expensive suit cheerfully talks through yet another disaster in the energy market. I’m watching and thinking: there was a time I simply couldn’t stand people like that, hated them with every fiber of my being. Ugh… I could’ve strangled them! With these very hands.

“Today the market fell by this much because so-and-so said this and something happened over there. But don’t worry, everything will be fine. See you next time.”

What?! Hey, clown, get over here! The market’s been crashing for three weeks! I’ve already lost almost everything! Don’t worry? Are you people fucking insane?!

Caught myself thinking: today I’m one of them. Same smiling investor, adviser, analyst—whatever you want to call it. The point is, I make money in the market (from consulting too, yes) and sleep just fine. How do I do it?

I’ll let you in on one secret. Actually, two.

1. For 90% of the people telling us about markets, most of their income is a fixed salary. Analysts, politicians, economists, executives at issuers, in-house advisers at brokerage firms, course and training sellers — you name it. Most don’t invest at all. Or they invest amounts that are insignificant relative to what they earn, amounts they can easily afford to lose. Just to try it. More of a “well, that sucks, but whatever” thing.

2. And the few who actually invest serious money and still keep smiling through drawdowns (like me) have realistic expectations, control their risks, and structure their capital properly.

The market lives its own life and owes us absolutely nothing. Every asset class has its own expected return. It’s fairly low, and to earn it we’ll have to wait at least 3–5 years. Then there are fees, taxes, and inflation. So if we want investment income we can actually live on, we’ll need money. A lot of money.

Nobody canceled volatility: even conservative, harmless-looking bonds can easily drop 20–25% in a crisis; stocks can fall 80–90%. Volatility can be reduced through diversification and/or timing, but no guarantees.

We have to accept these rules. Otherwise you simply won’t survive.