Tag: sequence risk
We find that a long or prolonged drawdowns early in an investor’s retirement can dramatically increase the probability of failure.
Investors have traditionally utilized a stock/bond glide path in order to control for sequence risk. Where does trend following fit in?
Trend following strategies may represent a beneficial diversifier for conservative portfolios going forward, potentially allowing investors to more fully participate with equity market growth without necessarily fully exposing themselves to equity market risk.
We believe that investors should most actively seek to manage risk when they are most susceptible to sequence risk, i.e. the years around retirement.
Video Digest: The State of Risk Management
By Nathan Faber
On August 28, 2018