Investment performance indexes across the world dropped 3% or more on August 14, 2019. Now is a good time to revisit your asset allocation and risk tolerance in relation to the time horizon for your investment goals.Numerous studies and the experience of many financial advisors confirms that investors think they have a high tolerance for volatility and risk... as long as markets are going up. But the same people often freak out when big drops occur, confirming that their tolerance for risk is much lower than they thought.
Of course, losses are only on paper (or online) until you actually sell.
How soon will you need your money? No one knows when the next large drop will occur. We are experiencing the longest bull market in history. How long can it last, especially with the current president's crazy trade policies and erratic national policies.
Time to check out some of my blog posts on asset allocation and risk tolerance.
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