The foundation of the most popular investment methodologies has often been based upon a relatively passive platform that incorporates a systematic process to diversify assets by asset class and investment styles. Although these types of foundations can be effective on the surface, Raj Bhuyan, Managing Partner of Tactical Wealth Management, notes that far less attention is typically given to a more consequential issue: the sheer abandonment of these types of portfolios by many investors at precisely the wrong moments.
According to Bhuyan, this disconnect represents one of the most overlooked risks in modern investing. "The biggest threat to successful long-term investing is not market volatility in and of itself," he says. "It's how investors behave in response to such price action."
