Published in Forest View November Issue by Chris Riley
Volatility is one of the few certainties in financial markets. You never know when it’s coming, but as investors we eventually face it and when we do, it can change our views about risk. Risk isn’t only theoretical, risk happens.
We’ve written in the past about how we work with clients to decide on an appropriate level of risk, but much of that work is hypothetical. It’s one thing to say that you can handle a 10% drop in your account. However, it’s another thing entirely to experience that drop. The most recent volatility in the stock market offers us all a great opportunity to rethink the level of risk we are truly comfortable taking.