ETF Trends
ETF Trends

March 9th marked the sixth anniversary of the current bull market. Since the average bull market lasts only 3.8 years, we think it may be time to take a look at client portfolios and decide whether it makes sense to incorporate additional safeguards.

Our last Navigator Insights discussed taking a personalized approach to risk management. Just as the markets go up and down, investors’ appetite for risk goes up and down. A personalized risk management approach will adjust and adapt to the changing markets based upon the desired outcome or goal of the client. There are a variety of ways to manage volatility, and each has its pros and cons.

Pros & Cons of Risk Reduction Tools

Time can manage volatility, since over long periods of time, the effects of market spikes are smoothed out. Using a bucket approach to asset management can help spread a client’s risk out throughout their investing lifecycle. But not every investor has the luxury of a long time horizon nor do they always have the emotional fortitude to just “stick it out” in a bear market.