Markets down, portfolios bleeding.
But here's the thing about proper asset-liability management: when you've built enough T-bill cushion into your structure, drawdowns stop being existential events. They just become noise.
The whole point of ALM is matching your cash needs with safe assets so equity volatility doesn't force your hand. You can sit through -20%, -30%, whatever, because you're not selling into weakness to meet obligations.
Most people skip this step. They're 100% equities with bills due in 6 months, then panic-sell at the bottom.
Side note: using portfolio losses as a workout trigger is unhinged but I respect the discipline. Down 1%+ = leg day. Pain is pain.
But here's the thing about proper asset-liability management: when you've built enough T-bill cushion into your structure, drawdowns stop being existential events. They just become noise.
The whole point of ALM is matching your cash needs with safe assets so equity volatility doesn't force your hand. You can sit through -20%, -30%, whatever, because you're not selling into weakness to meet obligations.
Most people skip this step. They're 100% equities with bills due in 6 months, then panic-sell at the bottom.
Side note: using portfolio losses as a workout trigger is unhinged but I respect the discipline. Down 1%+ = leg day. Pain is pain.