The Quiet Power of Stability: Why Predictable Returns Often Outperform the Market
Introduction
In the world of investing, headlines love drama—booms, busts, bull runs. But for many investors, especially those who value independence and long-term security, the real winners aren’t those who ride every wave, but those who steer a steady course. At Tamarack, we believe in the quiet power of stable returns—and why they can often outperform volatile market-based strategies over time.
The Myth of Market Superiority
The S&P 500 has long been considered the gold standard of passive investing. But what many investors forget is that its impressive long-term average return (typically quoted around 10%) is just that—an average. Real results depend heavily on when you invest and how long you can withstand the swings.
In any given decade, investors may face deep drawdowns, missed recoveries, or emotional selling that derails compound growth.
The Stability Advantage: Compounding Without Interruption
Now, let’s consider a stable return of 12% annually over 10 years. No volatility, no drawdowns—just consistent compounding.
After 10 years, a $100,000 investment with a 12% stable return grows to $310,585.
Meanwhile, a $100,000 investment in the S&P 500, averaging 10% with ±15–20% volatility, may only reach $250,000–$280,000, depending on timing and market behavior.
Why the difference?
Volatility drags down compound growth. Losses hurt more than gains help. When your returns dip—even temporarily—it takes more than just time to recover; it takes consistency to catch up.
Stable Doesn’t Mean Risk-Free
To be clear: no investment is without risk. At Tamarack, we never promise guaranteed returns. But what we do offer is:
- Access to real, cash-flowing assets
- Investments with historically lower volatility than equities
- Tax-advantaged structures that help you keep more of what you earn
- A disciplined, hands-on approach that prioritizes resilience over flash
The Takeaway: Don’t Just Chase High Returns—Chase Durable Ones
That’s why many of our investors are shifting from Wall Street volatility to real-world stability. They’re not opting out of performance—they’re upgrading the way they achieve it.
Want to See How This Could Work for You?
We’d love to share how Tamarack’s approach to stable, alternative investments can complement your long-term strategy.