FYI: The 95 percent plunge in the shares of Valeant Pharmaceuticals International Inc. since mid-2015 obviously was a disaster for investors who held on for the ride down. Professional traders tend to have risk-management strategies, taking smaller losses to protect capital and avoid a bigger loss. But many investors don’t necessarily have the same tools at their disposal — or the same dispassionate outlook. And so this episode is a teachable moment, and is an important reminder that there are many ways to achieve market-beating returns. Various styles present specific risks, and investors who seek to beat the market should be cognizant of the different hazards these methodologies present.
Regards,
Ted
http://ritholtz.com/2017/03/steady-wins-investment-race/Consistency Versus Hi-Performance Volatility:
In today’s column (posted above), we look at steady versus volatile performance. A few charts and tables didn’t make it into the column, but I wanted to share them with readers.
http://ritholtz.com/2017/03/consistency-versus-hi-performance-volatility/
