On My Radar: Three-Way Asset Strategy

On My Radar: Three-Way Asset Strategy by Steve Blumenthal, Capital Management Group

“The probability of loss is no more measurable than the probability of rain. It can be modeled, and it can be estimated (and by experts pretty well), but it cannot be known.”
– Howard Marks, Chairman, Oaktree Capital

I enjoyed that quote as well as the piece Marks wrote titled, Risk Revisited Again.  The reality is that because our investment time horizons are finite, we run the risk of running out of time.  We just might not make back what we lose in a major market downturn.  Some form of risk management is prudent, if not mandatory.

Within the math is the painful fact that gains and...