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Podcast: Money Life with Chuck Jaffe
Episode: Ritholtz's Maggiulli on the problem with fast recoveries, diversification and more
Description: Nick Maggiulli, chief operating officer at Ritholtz Wealth Management — the author of the "Of Dollars and Data" blog — says that while recoveries can happen faster now than in the past due to advances in technology and information, investors who always expect the market to bounce back quickly from any setback have learned the wrong lesson. While he is not calling for a protracted downturn, he is suggesting investors want to protect themselves; to that end, he discusses how proper diversification practically forces individuals to buy and hold something that will lose money, even when everything else is doing well. That...