This allows an investor to reduce his or her upfront capital requirement and to shelter real estate portfolios on the downside, while providing for alternative risk management strategies.

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"Comments from the FDA on the Drug Safety Risk Management Action Plan pose the biggest downside risk in our view, " wrote Geoffrey Meacham of J.

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Our strategy at Hanlon Investment Management is to attempt to minimize downside risk by exiting risk asset classes, such as equities, during periods of uncertainty, getting invested in more conservative asset classes, such as money markets and short-term bonds, and re-entering into risky asset classes when we identify them as attractive, when the trend is our friend and positive!

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These psychometric screening tools measure future upside potential rather than traditional risk management tools used by banks for debt contracts, which only measure downside risk.

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