A Quick Guide in Drawdown Risk Management for Long-Term Investors
The recent global equity market sell-off has justifiably generated media attention and investor concern about a potential bear market. But it also presents an opportunity to evaluate risk.
While market drawdowns are inevitable and necessary for healthy markets, investors don’t exactly jump for joy when one occurs. It’s important, however, for investors to remember there are two types of market downturns: corrections and bear markets.