Recent market volatility has presented investors with a minefield, and volatility has meant that many weak hands have capitulated and exiting the market, whilst some â especially investors with geared portfolios â have been carried form the market. Against this backdrop, in the article below, Seth Klarman makes the point that most investors lack a strategy that equips them to deal with a rise in volatility and declining markets. Momentum investors become lost when the momentum wanes, and growth investors lose direction when expected growth fails to materialise. Further, Klarman argues, by the time the market drops and bad news is on the front pages, it is usually too late for investors to react. In short, it is crucial to have a strategy in place before problems hit, precisely because no one can accurately predict the future direction of the stock market or economy. More: http://adriansaville.blogspot.com/2008/01/about-leverage-volatility-and-finding.html