Tagged: risk management

Geographic Diversification is Not Just for Doomsday

I advocate geographic diversification for a portfolio (using gold). This means not keeping all your money in the country where you happen to reside. The most common criticism I hear when I mention geographic diversification is, bar none, that it will be useless in a doomsday emergency because you can’t get to the assets. This objection though misses the most salient point of geographic diversification: Not every financial emergency is doomsday.  Now, understand that I don’t think imagining extremes in investing is ever a good...

Retirement Plan Seizure Risks and Nimble Wealth

Retirement plans are juicy targets for seizure by politicians. In fact, I think there is a decent chance of a retirement plan seizure in the future in the United States. I don’t know if/when it will happen, and I’m not suggesting you liquidate your retirement savings. But I think we should acknowledge that retirement savings have been seized in enough other countries to at least consider the possibility wherever you may live. I suspect the pols in the U.S. just need the right emergency to...

Deep Risk – New Book from Bill Bernstein

Bill Bernstein, author of investment classics such as The Four Pillars of Investing, has released a new book called Deep Risk. In his own words: Deep risk: How History informs Portfolio Design is the third installment in the investing for adults series. this series is not for novices. This booklet takes portfolio design beyond the familiar “black box” mean-variance framework. Most importantly, the short-term volatility of financial assets, commonly measured as standard deviation, is a highly imperfect measure of the...