Tagged: risk management

Market Volatility and Stop Losses

The market volatility we are seeing makes this a good time to re-post why I don’t recommend using stop losses: Stop Losses and the Permanent Portfolio The best way to deal with portfolio volatility is to have widely diversified assets (e.g. stocks, bonds, cash and gold). The other thing to do is ignore the market news and not get tempted to go in and start messing with things. At least, that’s what I’m doing and it has always worked for me.

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...