Drawdown Control

The article treats drawdown reduction as the central benefit of market timing. Investor survival depends heavily on avoiding large drawdowns. Investors should prioritize downside risk control over constantly beating the market. Large losse…

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The article treats drawdown reduction as the central benefit of market timing. Investor survival depends heavily on avoiding large drawdowns. Investors should prioritize downside risk control over constantly beating the market. Large losses and stress can lead to poor decisions or disrupt an investor’s long-term plan.