Hope for the Best, Prepare for the Worst
Intelligent, rational investors made some missteps prior to the last financial crisis that resulted in significant losses of wealth. Many of the missteps are
a result of popular misconceptions regarding major market events,
diversification, and risk.
Unfortunately, many years later, these misconceptions still lay at the
foundation of portfolio construction and expectations.
Understanding these misconceptions and ridding portfolios of these mistakes can help prepare investors for the next bear market.