Market Corrections Are More Common Than You Think
Over the last 20 years the S&P 500 has been down over 50% twice. Many investors do not consider the potential devastation this kind of correction would have on their financial lives.
Bonds Are Not A Safe Haven
Interest rates are at historic lows, if rates were to rise it would devastate portfolios and undermine the ability of bonds to protect capital.
It Can Take a Long Time to Recover
When markets drop 50%, simple math tells us investors need a 100% return in order to break even. During these types of events capital preservation is imperative to being able to participate in future bull markets.