The importance of risk management cannot be overstated in today’s capital markets. Yes, it has been a delightful magic carpet ride higher for the stock market since the spring of 2009. Some have become so sedated along the way that they potentially have all but forgotten the nearly devastating market turmoil that came before it during the financial crisis. It has been that long ago now that a good many others that have entered capital markets in the years since the crisis have come to expect that what we have experienced during the current phenomenal bull market run is not an unusual exception but actually the norm. And perhaps such relentless euphoria will continue well into the future. Only time will tell. But worrisome fundamental, technical and behavioral cracks continue to lurk under the surface. So while it remains worthwhile to continue participating as stocks continue their ascent, it is also just as important if not more so to not become complacent. For once the stock market finally peaks and begins moving sustainably to the downside, it is likely to take no prisoners along the way
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