The current government debt crisis has some economic and investment parallels to the negative feedback loop that surfaced during the housing and mortgage crisis. Chris Ciovacco explains why cutting investment losses and portfolio risk management strategies may become vitally important again if the global government debt crisis cannot be contained. Even stocks, such as Apple, that are not directed impacted by government debt may get hit hard if the debt problems in Europe and United States escalate over time. Ciovacco Capital Management reviews investor rationale for not developing a risk management plan or "stop loss" strategy for their investments. The debt crisis could spark a new bear market in asset prices, which is something that needs to be respected.
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