Step 8: Riskese in Under a Minute

Thursday, November 4, 2021 969 views

Mark Hebner explains how investors in both traditional and non-traditional index funds are likely to be rewarded for understanding and shouldering stock market risk. In fact, the very reason investors can expect to earn a return is because of their exposure to risks. The key is to invest in those risk factors that have been shown to compensate investors and to diversify away uncompensated risks. Examples of uncompensated risks are stock picking, time picking, manager picking, style picking, and past performance chasing. So investors should just invest in a risk level that matches their risk capacity, rebalance their portfolio and hold on until they need the money.


All videos are being provided for informational purposes only and should not be considered a solicitation, recommendation, or endorsement of any particular security, product or service, or considered to be investment or tax advice. There is no guarantee any investment strategies will be successful. Investing involves risks, including possible loss of principal. Past performance does not guarantee future returns. No investment decisions should be made solely based on the information in any of these videos. The opinions referenced within are as of the date of each video recording and are subject to change without notice. Information provided by third party sources is not endorsed or guaranteed by IFA. Where hypothetical back-tested performance is presented, please be sure to use the pause button at the end of the video to fully read the important disclosures including disclosures related to the use of this data. When charts and tables are used in this video, many may be viewed at a Video Resource section above.

riskesestep 8fund managersmark hebner12-stepconcentrated riskunconcentrated risk step 8: riskese in under a minute