What does last week’s market slide across most of the major asset classes imply for investing? A lot… or maybe nothing. The decision to adjust a portfolio, or not, depends on the risk-management strategy.

Every portfolio needs a clear-eyed plan for dealing with risk—it’s the financial brain that controls the investment body and provides the map for navigating rough financial seas. With that in mind, now’s a good time to review and reaffirm the first principles of enlightened risk management in the care and feeding of conventional investment portfolios.
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