Articles in "2017 September":

Sink or Swim – Knowing When to Diversify in a Bull Market

  John Diehl     Wed Sep 06 10:00:00 EDT 2017 


Investors have been reaping the benefits of a sustained bull market for some time now, which may instill in them a false sense of security and lead them to lose sight of risk levels in their portfolios.

While bull markets can be good news, they can also make your clients more susceptible to the hot hand fallacy – a term used to describe the behavior of expecting future results to mimic past results. In other words, since bull markets tend to encourage investor optimism, your clients may expect this upward streak to continue and, in turn, go “all in” with their investments.