How much market downside are you willing to accept before being willing to miss out on potential upside? More specifically, the author of today’s article poses the following question: “How much would the market have to decline at its worst point in the next year for you to forgo investing in stocks (S&P 500) to invest in bonds (5-Year U.S. Treasuries)?” He proceeds to identify at what point an “Avoid Drawdowns” strategy begins to outperform “Buy & Hold” – and what drawdown threshold may provide the absolute best performance. For more, CLICK HERE.
The Best Drawdown Threshold: When To Avoid Volatility – And When To Stomach It
Tags:Avoid DrawdownsBest Performing StocksbondsBuy And HoldInvestInvestingInvesting in StocksInvestorMarketS&P 500U.S. TreasuriesUpside Potential