--- title: "Meaning & Key Takeaway of: In the short run, however, stock returns…" description: "\"“In the short run, however, stock returns are very volatile, driven by changes in earnings, interest rates, risk, and uncertainty, as well as psycholog..." image: "https://sms4smile.com/quotes/i/6a1/jeremy-j-siegel-23115_customer_in-the-short-run-however-stock-returns-a_2620101.jpg" --- # In the short run, however, stock returns are very… ![“In the short run, however, stock returns are very volatile, driven by changes in earnings, interest rates, risk, and uncertainty, as well as psychological factors, such as optimism and pessimism as well as fear and greed.” quote by Jeremy J. Siegel](https://sms4smile.com/quotes/i/6a1/jeremy-j-siegel-23115_customer_in-the-short-run-however-stock-returns-a_2620101.jpg) [Download](https://sms4smile.com/quotes/i/6a1/jeremy-j-siegel-23115_customer_in-the-short-run-however-stock-returns-a_2620101.jpg) [Open image](https://sms4smile.com/quotes/i/6a1/jeremy-j-siegel-23115_customer_in-the-short-run-however-stock-returns-a_2620101.jpg) > ““In the short run, however, stock returns are very volatile, driven by changes in earnings, interest rates, risk, and uncertainty, as well as psychological factors, such as optimism and pessimism as well as fear and greed.”” [Jeremy J. Siegel](https://sms4smile.com/quotes/author/jeremy-j-siegel/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Short‑term market moves are driven by earnings, rates, risk, uncertainty, and psychology such as optimism, pessimism, fear and greed. **In simple terms:** Market swings reflect both fundamentals and emotions. Key Takeaway Recognize volatility and stay focused on long‑term goals. Themes finance psychology volatility risk investment Mood cautious analytical informed Type advisory educational analytical When to use this quote - portfolio planning - retirement saving - day trading - risk assessment - financial education Key Concepts behavioral finance market dynamics risk management Questions to Reflect On - How do you separate noise from signal? - What long‑term metrics guide your investing? A Different Perspective Short‑term noise can distract from strategic decisions. ★ ★ ★ ★ ★ No ratings yet [Customer](https://sms4smile.com/quotes/about/customer/) [Fear](https://sms4smile.com/quotes/about/fear/) [Investing](https://sms4smile.com/quotes/about/investing/) ## Related quotes > [“Over the 210 years I have examined stock returns, the real return on a broadly diversified portfolio of stocks has averaged 6.6 percent per year.”](https://sms4smile.com/quotes/jeremy-j-siegel/over-the-210-years-i-have-examined-stock-returns-the-real-return-on-a/) [Jeremy J. Siegel](https://sms4smile.com/quotes/author/jeremy-j-siegel/) > [However, optimism is highly valued, socially and in the market; people and firms reward the providers of dangerously misleading information more than they reward…](https://sms4smile.com/quotes/daniel-kahneman/however-optimism-is-highly-valued-socially-and-in-the-market-people/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [“...the ratings agencies' problem was in being unable or uninterested in appreciating the distinction between risk and uncertainty.”](https://sms4smile.com/quotes/nate-silver/the-ratings-agencies-problem-was-in-being-unable-or-uninterested-in/) [Nate Silver](https://sms4smile.com/quotes/author/nate-silver/) > [Investors frequently benefit from making decisions with less than perfect knowledge and are well rewarded for bearing the risk of uncertainty. The time other…](https://sms4smile.com/quotes/seth-klarman/investors-frequently-benefit-from-making-decisions-with-less-than/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [ Wall Street sometimes gets confused between risk and uncertainty, and you can profit handsomely from that confusion. The low-risk, high-uncertainty \[situation\] gives us our… ](https://sms4smile.com/quotes/mohnish-pabrai/wall-street-sometimes-gets-confused-between-risk-and-uncertainty-and/) [Mohnish Pabrai](https://sms4smile.com/quotes/author/mohnish-pabrai/) > [“When you just wing it, you are aware of the risk and the uncertainty, and inclined to be more cautious. When you have a…](https://sms4smile.com/quotes/neal-stephenson/when-you-just-wing-it-you-are-aware-of-the-risk-and-the-uncertainty/) [Neal Stephenson](https://sms4smile.com/quotes/author/neal-stephenson/) > [“People’s lives are forever controlled by two emotions: fear and greed. Offer them more money and they continue the cycle by increasing their spending.…](https://sms4smile.com/quotes/robert-t-kiyosaki/people-s-lives-are-forever-controlled-by-two-emotions-fear-and-greed-2/) [Robert T. Kiyosaki](https://sms4smile.com/quotes/author/robert-t-kiyosaki/) > [“Autumn is always a time of Fear and Greed and Hoarding for the winter coming on. Debt collectors are active on old people and…](https://sms4smile.com/quotes/hunter-s-thompson/autumn-is-always-a-time-of-fear-and-greed-and-hoarding-for-the-winter/) [Hunter S. Thompson](https://sms4smile.com/quotes/author/hunter-s-thompson/) > [People's lives are forever controlled by two emotions: fear and greed.](https://sms4smile.com/quotes/robert-kiyosaki/people-s-lives-are-forever-controlled-by-two-emotions-fear-and-greed/) [Robert Kiyosaki](https://sms4smile.com/quotes/author/robert-kiyosaki/) > [While neurological studies have tried to identify components responsible for fear and greed, the impact on finance is less clear.](https://sms4smile.com/quotes/andrew-lo/while-neurological-studies-have-tried-to-identify-components/) [Andrew Lo](https://sms4smile.com/quotes/author/andrew-lo/) > [Fear and greed are probably the worst emotions to have in connection with the purchase and sale of stocks.](https://sms4smile.com/quotes/walter-schloss/fear-and-greed-are-probably-the-worst-emotions-to-have-in-connection/) [Walter Schloss](https://sms4smile.com/quotes/author/walter-schloss/) > [I love the competitive part of stocks. A lot of fear and greed, that's all it is. All I see is green and red.](https://sms4smile.com/quotes/josh-brolin/i-love-the-competitive-part-of-stocks-a-lot-of-fear-and-greed-that-s/) [Josh Brolin](https://sms4smile.com/quotes/author/josh-brolin/) > [“reactions and think. That is important. We will always have emotions of fear and greed. From here on in, it’s imperative for you to…](https://sms4smile.com/quotes/robert-t-kiyosaki/reactions-and-think-that-is-important-we-will-always-have-emotions-of/) [Robert T. Kiyosaki](https://sms4smile.com/quotes/author/robert-t-kiyosaki/) > [“Fear, greed, and ego are very expensive monkeys to have on your back while trading.”](https://sms4smile.com/quotes/steve-burns/fear-greed-and-ego-are-very-expensive-monkeys-to-have-on-your-back/) [Steve Burns](https://sms4smile.com/quotes/author/steve-burns/) > [Fear and greed tend to affect one's judgement.](https://sms4smile.com/quotes/walter-schloss/fear-and-greed-tend-to-affect-one-s-judgement/) [Walter Schloss](https://sms4smile.com/quotes/author/walter-schloss/) ## More by Jeremy J. Siegel > [“By the end of 2012, the price of gold reached $1,675 per ounce, and $1 of gold bullion purchased in 1802 was worth $86.40…](https://sms4smile.com/quotes/jeremy-j-siegel/by-the-end-of-2012-the-price-of-gold-reached-1-675-per-ounce-and-1-of/) [Jeremy J. Siegel](https://sms4smile.com/quotes/author/jeremy-j-siegel/) > [“At the end of 2012, the yield on nominal bonds was about 2 percent. The only way that bonds could generate a 7.8 percent…](https://sms4smile.com/quotes/jeremy-j-siegel/at-the-end-of-2012-the-yield-on-nominal-bonds-was-about-2-percent-the/) [Jeremy J. Siegel](https://sms4smile.com/quotes/author/jeremy-j-siegel/) > [“The S&P 500 Index originally contained exactly 425 industrial, 25 rail, and 50 utility firms, but these groupings were abandoned in 1988 in order…](https://sms4smile.com/quotes/jeremy-j-siegel/the-s-p-500-index-originally-contained-exactly-425-industrial-25-rail/) [Jeremy J. Siegel](https://sms4smile.com/quotes/author/jeremy-j-siegel/) > [“Africa remains a small part of the world economy until 2070, when it begins to expand rapidly, reaching 14 percent, the same size as…](https://sms4smile.com/quotes/jeremy-j-siegel/africa-remains-a-small-part-of-the-world-economy-until-2070-when-it/) [Jeremy J. 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Siegel](https://sms4smile.com/quotes/author/jeremy-j-siegel/) > [“There is a good reason why stocks are not reacting to Fed policy as they have in the past. Investors have become so geared…](https://sms4smile.com/quotes/jeremy-j-siegel/there-is-a-good-reason-why-stocks-are-not-reacting-to-fed-policy-as/) [Jeremy J. Siegel](https://sms4smile.com/quotes/author/jeremy-j-siegel/) > [“The first actively traded U.S. stocks, floated in 1791, were issued by two banks: the Bank of New York and the Bank of the…](https://sms4smile.com/quotes/jeremy-j-siegel/the-first-actively-traded-u-s-stocks-floated-in-1791-were-issued-by/) [Jeremy J. Siegel](https://sms4smile.com/quotes/author/jeremy-j-siegel/) > [“In 2006 the United Nations Human Development Report estimated that 2.6 billion people, or 40 percent of the world’s population, had no indoor plumbing.”](https://sms4smile.com/quotes/jeremy-j-siegel/in-2006-the-united-nations-human-development-report-estimated-that-2/) [Jeremy J. Siegel](https://sms4smile.com/quotes/author/jeremy-j-siegel/) > [“would the Volcker amendment, had it been law in 2007, have prevented the 2008 financial crisis? The financial crisis was caused by the overleveraging…](https://sms4smile.com/quotes/jeremy-j-siegel/would-the-volcker-amendment-had-it-been-law-in-2007-have-prevented/) [Jeremy J. Siegel](https://sms4smile.com/quotes/author/jeremy-j-siegel/) > [“There is no question that the losing IPOs far outnumber the winners. Of the 8,606 firms examined, the returns on 6,796 of these firms,…](https://sms4smile.com/quotes/jeremy-j-siegel/there-is-no-question-that-the-losing-ipos-far-outnumber-the-winners/) [Jeremy J. Siegel](https://sms4smile.com/quotes/author/jeremy-j-siegel/) > [“the economy of China will become twice the size of the U.S. economy in 2025 if both countries’ per capita income continues to grow…](https://sms4smile.com/quotes/jeremy-j-siegel/the-economy-of-china-will-become-twice-the-size-of-the-u-s-economy-in/) [Jeremy J. Siegel](https://sms4smile.com/quotes/author/jeremy-j-siegel/) > [“The government can put dividends on the same tax basis as capital gains if the tax authorities allow investors to obtain a tax deferral…](https://sms4smile.com/quotes/jeremy-j-siegel/the-government-can-put-dividends-on-the-same-tax-basis-as-capital/) [Jeremy J. Siegel](https://sms4smile.com/quotes/author/jeremy-j-siegel/) > [“As a result, proportional movements of high-priced stocks in the Dow averages have a much greater impact than movements of lower-priced stocks, regardless of…](https://sms4smile.com/quotes/jeremy-j-siegel/as-a-result-proportional-movements-of-high-priced-stocks-in-the-dow/) [Jeremy J. Siegel](https://sms4smile.com/quotes/author/jeremy-j-siegel/) [Explore all 26 Jeremy J. 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