Constructing a Risk-Averse Portfolio By Sham Gad About this article: Times are good for equity investors. The market seems to have put the troubles of last year's near-financial-meltdown behind it. Investors, however, should not. Doing so suggests that the market decline that took hold last year hasn't illustrated the necessity of risk management. Despite whatever nuggets of improving fundamentals the economy may be showing, stock prices, as measured by the S&P 500 index, are no longer cheap. Continued growth in the economy has been primarily due to productivity gains on behalf of the private sector and stimulus efforts from Uncle Sam. I penned a piece several weeks ago arguing that despite the market's rally, the bull still had legs. I still feel this way, but that does not mean I'm buying equities with wild abandon. The longer this rally continues as is, the greater the chance of a more-pronounced pullback. When this shock could occur is anyone's guess;... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200.

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