atans1

Words of wisdom from top hedgie

In Financial competency on 12/06/2017 at 1:34 pm

On “risk” and the “perception of risk”/

“When share prices are low, as they were in the fall of 2008 into early 2009, actual risk is usually quite muted while perception of risk is very high,” Klarman wrote. “By contrast, when securities prices are high, as they are today, the perception of risk is muted, but the risks to investors are quite elevated.”
Read more at http://www.businessinsider.sg/baupost-groups-seth-klarman-on-market-risk-post-trump-trade-2017-5/#WuKyJzlYuqwcGixg.99

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  1. Use tactical asset allocation to avoid the big crashes & drawdowns. If want to be always “fully invested” then buy volatility insurance when it is cheap during times of complacency.

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