Ditch your finance guy now…
Volatility is an indicator of the potential presence of risk, but not risk itself.
Risk is the probability of loss.
Most finance professionals do not know the probability of loss.
They are often lucky or survive, quite literally, due to survivorship bias.
The win/loss ratio is often less impressive.
They sit there pontificating with no clue about what Mr. Market is doing, while simultaneously embracing Mr. Market’s multiple or P/E expansion.
Speaking survivorship bias into existence by touting winners?
They might know it, and you should know it too.