Another Way to Understand Risk: Ritholtz Chart

Barry Ritholtz is a Bloomberg View columnist. He founded Ritholtz Wealth Management and was chief executive and director of equity research at FusionIQ, a quantitative research firm. He blogs at the Big Picture and is the author of “Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy.”
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Last month, we looked at the concept of risk. As we learned, the things we fear are big, scary and exciting. Instead, we should fear the more mundane things in our lives like cholesterol and heart disease.

Similarly, investors often fear big scary events -- Crashes! Hyper-Inflation! Currency Collapse! What are more likely to damage their portfolios are mundane things like over-trading, excess fees and taxes.

Thanks to the Institute for Health Metrics and Evaluation, you can actually play around with the data and explore the causes of death for Americans (and take a look at this Bloomberg data visualization on the same topic) and many other countries around the world.

Whether you are a chart junkie or a hypochondriac, it's quite fascinating.

This column does not necessarily reflect the opinion of Bloomberg View's editorial board or Bloomberg LP, its owners and investors.

To contact the author on this story:
Barry L Ritholtz at britholtz3@bloomberg.net