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.
The Path-Dependent Nature of Perfect Withdrawal Rates
By Nathan Faber
On April 22, 2019