I should add that for the investor, who has a well-diversified portfolio of assets and has high cash flow (personal income and income from investments), downside volatility offers an opportunity to acquire assets at distressed prices or add to his positions at a more favorable entry point.
However, for the investor without any free cash flow, downside volatility can be extremely problematic because the option to increase positions at distressed prices is not available to him.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
