Updated: March 9, 2017
I know I don’t have to tell you that risk management is one of the keys to successful long-term investing.
But here’s the strange thing: most responsible, risk-conscious investors underperform the market—and not by a little.
Because the reality of risk management is not the conventional wisdom frequently peddled by financial advisors. They warn that taking on too much risk will threaten your life savings, so you need to choose an extremely conservative fund and invest for the long term.
That’s close enough to the truth to sound convincing—but unfortunately it’s wrong. (I’ll show you two funds that upend the “conventional” wisdom—and deliver consistent market-beating gains—in just a moment.)