Is Your Passive Portfolio Too Aggressive?

BY ROB ISBITTS, Forbes

The past 10 years have been both a glorious ride and a great excuse for investor complacency. After all, just invest your money in the broad market indexes, go about your business, and retire early, right?  Well, not so fast.

Investing is above all else cyclical. And while cycles can be muted by suppressing interest rates, media hoopla, good vibes and animal spirits, eventually, the collective investment population decides that high is too high. And I am talking about the broad stock market, not the emerging cannabis industry.

At some point, investor complacency gets so hard-coded into the mainstream, people like me — risk-managers and financial realists — get drowned out by the hype of IPOs, high-tech stock price records, and the like. But at some point investors come to be reminded that investing in “the market,” as opposed to prioritizing the management of risk, has a downside.  Read more  >>

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