Sequence risk is something we’re all likely familiar with, even if we call it by another name. It’s based around the concept that money placed into and taken out of a fluid and changing market will vary in terms of growth and withdrawal percentage depending on the time in which the withdrawal occurs. For example, consider an investment which only allows investors to buy a share at a predetermined price (in this case, we’ll say $1) on a certain day. For this example, your share can only be redeemed with the issuer at maturity, at which point it’s worth a pre-determined value. This investment, essentially has no sequence risk. It doesn’t matter when you withdraw it, it’s always worth $1.