Most people fundamentally misunderstand volatility. They see it as randomness, chaos, or destruction. This perception drives them to seek stability at all costs, building rigid structures they hope will withstand disruption. But volatility isn't chaos—it's rapid change. And rapid change, properly understood, creates more opportunity than stability ever could.
Think about water. In a still pond, nutrients settle to the bottom. Algae forms on the surface. The ecosystem stagnates. But in a rushing river, constant movement brings fresh nutrients, oxygen circulates throughout, and life thrives in the dynamic environment. Markets, careers, and opportunities work the same way.
During stable periods, advantages calcify. Those who got in early maintain their positions. Barriers to entry solidify. Innovation slows because there's little pressure to change what's working. The economics textbooks call this "market efficiency," but for anyone trying to create new value, it's more like market sclerosis.
Volatility shatters these rigid structures. Suddenly, established players can't rely on position alone. New needs emerge faster than old systems can address them. Gaps open between what was and what's needed now. These gaps are where fortunes are made.
Consider what happened to retail during 2020. For years, e-commerce grew steadily but slowly, held back by consumer habits and established retail infrastructure. Then volatility struck. Physical stores closed overnight. Consumer behavior changed in weeks. The stable, gradual transition everyone expected compressed into months.
Who won? Not the established retailers with massive real estate footprints and traditional supply chains. The winners were agile players who could move fast, experiment rapidly, and scale what worked. Small direct-to-consumer brands suddenly found themselves competing on equal footing with giants. Individual entrepreneurs with good ideas and quick execution captured market share that would have taken decades to win in stable times.