Determine How Long Is Long-Term for Your Clients

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Radical Thoughts on Long-Term Investing

Traditionally, we've built portfolios based on the idea that an investor with a longer time horizon can handle the risk of a larger allocation to equities. However, the order of returns—whether they come late in the holding period or early—can make stocks just as risky 20 years out as they are today.

The True Cost of Volatility's Wild Ride

Clients may like a little excitement now and then, but can they stomach plunging drops in their account values? To truly test their risk tolerance, forget metrics like standard deviation and show them—in actual dollars—the hits they'll take under different conditions of volatility. The resulting performance may not be worth the pain.

Think About It: Liquidity Drives the Markets

Market movements in the short term aren't caused by investors making value judgments but by investors seeking and supplying liquidity. Being able to understand this and explain it to prospects and clients is a critical component of your value proposition.

Avoid Liquidity Crisis in Client Portfolios

Potential loss of liquidity makes risk levels hard to predict, especially for mutual funds and leveraged hedge funds. Learn about redemption risk, techniques for measuring potential risk in leveraged funds, and more.