Mid-cap and large - cap stocks provide significant
buffers against downside risk, whether by events within or outside the control of management.
The remaining 20 % -30 % in cash equivalents continues to provide value as
a buffer against downside volatility, as well as serve as a storage place until it is time to acquire assets at more attractive prices.
The only true
buffer against downside risk is proper stock analysis and purchasing an equity at a discount to it's intrinsic value.
Not exact matches
That's because increasing upside simultaneously decreases
downside, all while building in a margin of safety (a
buffer) that protects an investor
against ending up «upside down» on an investment.
This unique strategy uses options to participate in market gains, plus hold - to - maturity corporate high - yield fixed income ETFs as a
buffer to help protect
against downside risk.