Personal Investments • Is crying allowed? [Portfolio down 4%]

This might be a sign that your risk tolerance isn't as high as you thought. If a 4% drop is all it took for you to learn this, then it is a cheap lesson! Find an asset allocation that allows you to sleep well at night.

This is true, but there are two sides to what that entails. An asset allocation that suppresses even 4% fluctuations is going to be a very low returning portfolio that will meet only the least of objectives and maybe not even that. A more balanced approach would be to better understand that investing is risky but worthwhile and that one should give thought to adjusting one's tolerance appropriately. This does take some learning, experience, and thought about what is going on.

Statistics: Posted by TomatoTomahto — Thu Jul 25, 2024 8:18 am — Replies 105 — Views 7807