As negative news about the global markets compounds, many investors are contemplating reducing or eliminating the equity holdings in their portfolio. While this strategy will eliminate the equity market risk in their portfolio, the decision carries other consequences that many investors overlook. On this week’s “Science of Investing” segment, Greg Hebert and I discuss whether it is rational to sell in a down market and the additional risks that an investor takes on when they reduce their market exposure. 

You can listen to the interview here.