Risk can be a quotient topic. Risk tolerance equations can change when divisible by time but they can also change with knowledge. Some of the long-held, common sense wisdom regarding risk might actually be more fallacy than fact. When considering your investment time horizon, Famed Boston University professor Zvi Bodie and financial planner Paula Hogan recommend that investors focus on how much they are willing to lose first, not how much they are willing to gain. [klarman] Does risk really decrease over your investment time horizon? There is a common investing axiom that investing risk diminishes with time. Bodie and…
But what if stocks don’t do well? What happens then to my retirement?”
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.