Negotiating risk

After two stock market crashes in a decade, and ongoing anxiety about sovereign debt in Europe, volatility has become a chronic companion for serious investors. Those who can't stand the heat can always do what chartered accountant David Trahair suggests in his book, Enough Bull, and make a permanent retreat to GICs. These let you sleep at night, but after taxes and inflation, you'll be hard pressed to eat well in old age. Here, in increasing complexity, are five other ways to cope with chronic market volatility:

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