Comments on: Determining risk tolerance http://www.bluntmoney.com/determining-risk-tolerance/ Wed, 12 Oct 2011 07:20:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Dana http://www.bluntmoney.com/determining-risk-tolerance/comment-page-1/#comment-49897 Dana Mon, 16 Mar 2009 14:36:21 +0000 http://www.bluntmoney.com/determining-risk-tolerance/#comment-49897 I think that investing is an inherently risky activity. For an invested individual in 2008, this meant an across-the-board decline of any carefully constructed portfolio. Diversification mattered little. Geographically, Asia, Europe, North America and Australia all suffered. Across most sectors, stocks stayed depressed. In this kind of globally intertwined environment, without a good macro understanding of the market, no one business or sector can be proclaimed safe based purely on its own merits. So perhaps it would be good to re-assess one's true risk tolerance in face of so much uncertainty. I think that investing is an inherently risky activity. For an invested individual in 2008, this meant an across-the-board decline of any carefully constructed portfolio. Diversification mattered little. Geographically, Asia, Europe, North America and Australia all suffered. Across most sectors, stocks stayed depressed.

In this kind of globally intertwined environment, without a good macro understanding of the market, no one business or sector can be proclaimed safe based purely on its own merits. So perhaps it would be good to re-assess one’s true risk tolerance in face of so much uncertainty.

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