Understanding that silent portfolio killer: Sequence of return risk

The dangers of sequence of return risk might come as a shock to cashflow model evangelists

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The dangers of sequence of return risk might come as a shock to cashflow model evangelists, writes Abraham Okusanya...

What is the world's deadliest animal when it comes to killing humans? Most people intuitively think of beasts with large teeth and fearsome reputations, such as the Lion, Wolf or the oft-cited Hippo. In reality though, it is the tiny mosquito that does the most damage. It causes more deaths than virtually any other animal; responsible for about 725,000 human deaths annually, only human beings themselves come close, with a tally of about 425,000. And what of man's supposedly best friend? Dogs kill about 25,000 people each year, almost exclusively because of rabies. Now compare these...

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