"Risk comes from not knowing what you're doing." -Warren Buffet
Indexing is not risk managementIndexing has been touted as the safest way to invest, and has been adopted as the standard advice from almost every financial advisor in the business.
If the market falls, you will either lose a significant amount of money, or a significant amount of opportunity in compounding time lost.
In a crowded trade (the index trade), when panic hits, buyer disappear, causing a liquidity crisis, which creates a feedback loop of panic and crisis.
Paying an advisor 1% per year to index your investment is just moving money from one provider's pocket to the other, with no benefit to you.
How we think about riskWe know that there are ways to keep the average performance of the stock market while cutting risk to almost zero, and that's what we offer our clients. Most advisors neither understand nor use these techniques. The conventional wisdom of "buy and hold" doesn't offer the option of managing downside risk. Ours does.
Photos by Christofer Jeschke, Hunters Race, M.B.M., Alex Holyoake, Cytonn Photography, and Saffu