U.S. Markets close in 4 hrs 37 mins

The Stock Market Is Risky. Here’s What You Can Do About It.

Ben Levisohn

The stock market is risky—even when it is going in the right direction. Investors were reminded of that during the fourth quarter of 2018, when the Dow Jones Industrial Average and S&P 500 nearly suffered full-blown bear markets. Portfolio managers measure the “value at risk” of their portfolios, using recent volatility to calculate the loses they might sustain in a pullback.