NEWS

Using Volatility to Gauge True Risk Tolerance 

(edited transcript) … Never ceases to fail during a bull market that people come in and want to discuss their risk tolerance. “I think it’s too low. I think we should be taking some more, more risk.” Certainly, reevaluate. Love to remind them what started off that risk tolerance. Joke all the time, everybody has a high gains tolerance. That’s not the question. What’s your pain tolerance is and how quickly things flip. Soon as the market starts to pull back, people get religion real fast, as they say. I just think when you ask yourself the question of risk tolerance, picture yourself whatever high thing you want to look at. And are you looking again upwards towards the gains you hope to get when you’re talking about your risk tolerance? Or are you really looking down at how far you could fall? To understand if that’s something you’re not only willing to accept, but can afford to accept. In terms of your plan, and your overall portfolio. Very easy to get swept up in the moment. Greed or fear. And again, a big part of our role is, is being just that Jiminy Cricket type character to ask people, hopefully, the questions that get them to their truth. 


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