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Rick Bookstaber, Fabric – Risk Is The Other Side Of The Coin From Opportunity | #363

The Meb Faber Show - Better Investing

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Market Cap Waiting

Market cap waiting was an amazing innovation 50 years ago, but it's a curious investment strategy. The problem to market cap waiting is when things go totally bananas and you live through. Nearly every decade from the fifties on, we've seen drops of over 35 % in the market in 19 70. If you believe what people always believe, which is we have a normal distribution, you would see, over 50, the odds of seeing 35% down events in 50 years is less than one%.

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