Sent to you by Nilesh via Google Reader:
Roger Nusbaum submits: Institutional Investor excerpted a little from Howard Marks from Oaktree Capital Management's piece about risk. The article covers just about every aspect of risk and provides a little validation for some of the ideas I write about. The article is a must-read.
Instead of dissecting the article, I'll just add a couple of thoughts. The excerpt devotes very little to how people take their perception of risk and then mismanage it. Someone left a comment on a post of mine at Seeking Alpha that he has 40% in closed-end funds. I don't know if closed-end funds are new for this person or not, but every few years there is the right type of negative event in the market that generally crushes closed-end funds, unjustifiably so. A 40% weighting is a crushing waiting to happen.
Invariably, while things are going well, like now (on a price basis, things have been going
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