The market is unpredictable, however much you want to believe otherwise. Instead of trying (and failing) to time your entry and exit, you should structure a portfolio ahead of time that better handles market swings.
Many people confuse diversification with asset allocation. They’re different (read link for short explanation how). That difference often leads to surprise when a person’s portfolio does something they didn’t expect.
The Black Swan portfolio requires more attention to the mathematics of diversification.
Original blog … Black Swan Portfolio Construction – is it possible? … that inspired my syndicated article below.
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