The Hidden Risk Inside Passive Investing & Buy And Hold Strategy | Cem Karsan

Passive investing and the traditional 60/40 portfolio face major challenges as the favorable macro environment of falling rates and disinflation shifts.

Historical Sharpe ratios reveal investors have accepted enormous volatility for returns, suggesting diversification may not protect as assumed.

Risk management and managing downside volatility will become far more important than simply chasing returns in the next market regime.