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How to Make Volatility Work For You
“Markets can remain irrational longer than you can remain solvent” is a famous line on Wall Street. The underlying premise for the quote is that your analysis that markets or sectors are overvalued or undervalued can be correct in the long-term, but so wrong on the timing that you can go broke. The key takeaway: must manage risk appropriately. Research and experience shows us that the average investor’s tolerance for risk is higher when markets are strong or benign, but that self-assessment of risk tolerance will often be challenged as market conditions change. While a buy and hold approach appears to work best ... (full story)