Q: What don’t low-fee index funds protect you from?
A: Drawdowns.
Hedgeye CEO Keith McCullough explained this morning on The Macro Show how the Hedgeye Process goes beyond the standard ‘buy-and-hold’ approach.
“Diversify and don’t drawdown,” McCullough explained. “None of what Jack [Bogle] created is going to help you with that…But we’re going to help you with that. Diversify and don’t drawdown.”
How should you assess your personal risk tolerance to position yourself correctly? McCullough explains: “Can you lose three basis points of your hard-earned capital; will that change your life? Think about that. That’s why I construct the book that way.”
Subscribe to The Macro Show to learn how the Hedgeye Process can bulletproof your portfolio.
