Fortunes are made over short bursts in a rising stock market. Fortunes are also lost in very abrupt meltdowns. But the fortunes that are protected in time are the ones that last.
After every bull run, it is only the fortunes that are protected that people actually remember later. The wealth that got made and lost inevitably gets forgotten. Nobody remembers those who got rich quick and lost everything at the same pace.
It is every investor’s duty to identify the rising risks in his portfolio and to constantly mitigate the risks. At a time when every asset class has delivered returns, it is critical to get your asset allocation right. Investors who manage to get it right on time will be the real winners of this market cycle.