good article, Carl. In my dealings with risk management, I have read many examples were firms thought they were hedged, but in reality they became more tied to the overall market so that when things went south, they were bleeding from multiple wounds while the removal of liquidity in the market left them no way to liquidate their positions.
and pretty much sums up the main reason I am NOT a long term investor. rather I try to stay out of debt, save for the long term, and put aside some cash for emergencies, and put aside some cash to take advantage of opportunities.