Investment risks vary in intensity. Some are more
or less benign, and others occur relatively infrequently. There
are routine drops in the stock market during even the healthiest
bull market, and occasional corrections in which the market gives
up 10% or so of its value.
Other events can wipe out years of portfolio gains, and may even
force you to defer or rethink some of your financial goals. When
the market lost 48% of its value in 1973-1974, it took 64 months
— more than five years — to climb back to its previous
high.
While there isn't a foolproof way to predict when or in what
form a setback will occur, it is possible — and useful —
to be familiar with the most reliable tools for measuring risk.
Thomas J. Dorsey, President and
co-founder of Dorsey, Wright &
Associates
Thomas J. Dorsey, President and
co-founder of Dorsey, Wright &
Associates 
