Shallow Dives

Unlike most legal principles that require proof of intent or negligence, strict liability holds parties responsible regardless of fault. This seemingly harsh rule actually functions as sophisticated social technology—aligning incentives, reducing litigation costs, and forcing risk onto those best positioned to manage it.

Two investors with identical portfolios and identical returns can end up with wildly different outcomes—all because of the order in which their gains and losses occurred. Understanding sequence of returns risk is crucial for anyone approaching retirement.