Investment Risk

Investment risk: Malkiel literally wrote the book on long-term stock investments, according to Market Watch. Random Walk is in its 11th edition and has sold 1.5 million copies and counting. Investment risk has changed dramatically in the past few years, so much so you might not even recognize the risks implied by owning a "standard" stock-and-bond portfolio, warns Burton Malkiel, the Princeton professor who wrote the investing classic A Random Walk Down Wall Street. A former member of the Vanguard board and presidential advisor, Malkiel is a member of the Investment Committee of my firm, Rebalance IRA. We both recently appeared on the long-running PBS series Consuelo Mack Wealthtrack, and Mack specifically asked Malkiel to elaborate on the problem of retirement investing risk in the current environment. It was clear to the Rebalance IRA Investment Committee that a total bond market fund would be riskier than in years past due to globally low interest rates . That was one problem to solve: How to find income in a possibly unstable domestic bond market. In short, there is risk where there used to be stability, and vice versa, Malkiel said. (news.financializer.com). As reported in the news.