Deep Risk

by William J. Bernstein

Book Reviews

  • Here's the interview: https://t.co/gjE3wcyt8i and if you haven't read Bernstein's book Deep Risk, it's especially relevant during a bear market https://t.co/iZgxP5KmbGLink to Tweet

About Book

This booklet takes portfolio design beyond the familiar "black box" mean-variance framework. Most importantly, the short-term volatility of financial assets, commonly measured as standard deviation, is a highly imperfect measure of the actual long-horizon perils faced by real-world investors subject to the vagaries of financial and military history. These risks have names--inflation, deflation, confiscation, and devastation--and any useful discussion of portfolio design of necessity incorporates their probabilities, consequences, and costs of mitigation ... This booklet contains ... with luck, a framework within income and all-equity portfolios. This booklet contains ... with luck, a framework within which to think more clearly about risk. Note: the entire Investing for Adults series is not for beginners.