The Risk-Reward Tradeoff in a Volatile Market
Steven Halpern of MoneyShow.com welcomes Frank Holmes to talk about his recent blog post that asks investors: Can You Handle the Stress of Losing 40 Percent in the Market? Frank walks Steven through this hypothetical story of two men who invested their money in the year 2000 as they neared retirement age – one of them aggressive and the other conservative.
Since the two characters in the article live through volatile markets similar to the ones we are experiencing today, Frank thinks now is a great time for investors to take a look at this story.
Listen to the interview to hear Frank’s opinion on how much risk is worth the reward when it comes to investing, and how he uses the characters’ investment choices to stress the importance of portfolio diversity.
In this short video, Director of Research John Derrick expands on Frank’s thoughts by making a case for short-term municipal bonds.
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Category: Municipal National Short-term funds
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Diversification does not protect an investor from market risks and does not assure a profit.