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Some funds unafraid to take relatively larger risks have also outperformed.
Together, they will take larger risks and be more violent than they otherwise would individually.
Then, the trades "morphed into something that rather than protect the firm, created new and potentially larger risks".
That could force other investors, in turn, to take larger risks in the face of lower returns.
"This portfolio morphed into something that, rather than protect the firm, created new and potentially larger risks," he said.
Indeed, Mr. Bernanke argued recently that pulling back could pose even larger risks to stability by weakening the economy.
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"Perhaps it may become a much larger risk; this has the potential," Mr. Gullotto said.
BUT the larger risk that Reddit runs could be even greater.
Digital has been seen as the long-term risk in news businesses, with its uncertain revenues and peripatetic audiences, but the larger risk remains in print.
"There's always a risk, but there's a larger risk when you don't do it," said Mr. Garabadian, 54, a gasket salesman from Bellingham, Mass.
By far the larger risk was in growing too slow.
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