Considering Alternative Risks in Portfolios

Equity risk will inevitably play some role in a portfolio, depending on the portfolio’s goals. That makes sense when you consider that equities represent exposure to the productive economy.  Over a long time horizon, that exposure provides the kinds of returns that most investors need to accomplish their goals. But, what about when you expect the economy to falter or, worse, enter a period of decline? Is it enough to endure the paper losses in your portfolio, knowing that over time