What Practitioners Need to Know... About Time Diversification

• Published in: Financial analysts journal Vol. 71; no. 1; pp. 29 - 34
• Main Author: Kritzman, Mark
• Format: Journal Article
• Language: English
• Published: Charlottesville CFA Institute 01.01.2015; Taylor & Francis Ltd
• Subjects: Confidence intervals; Diminishing marginal utility; Diversification; Down payments; Economic theory; Financial management; Index funds; Investment analysis; Investments; Portfolio diversification; Rates of return; Return on investment; Risk exposure; Risk management; Standard deviation; Stocks; Studies; Time

Although an investor may be less likely to lose money over a long horizon than over a short horizon, the magnitude of a potential loss increases with the length of the investment horizon.