Wednesday, 15 March 2017

Investors need to brace for a stock market correction

Many investors, even those who work with a financial advisor, have no idea how much money they would lose in a stock market crash. That is a big problem.
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Straight talk from the money editor
Investors naturally pay close attention to returns in their accounts. Any risk they took is an afterthought until there is a stock market sell-off. The fact is that risk and return go together like bacon and eggs. However, too much of one or the other can make for a bad outcome. That's why it's so important to truly understand your risk tolerance.
Sadly, most investors are unaware of the amount of risk they can handle or that they take on in their portfolios. The inability to understand your level of risk can and will impact your investments. For example, if you are unaware of your financial risk tolerance, you might have a false sense of courage, which can lead to making irresponsible investment decisions. All investments carry some degree of risk. By better understanding the nature of risk, and taking steps to manage those risks, you put yourself in a better position to meet your financial goals. For more cool stuff, follow me on Twitter  @jimpavia.


Jim Pavia
Money Editor
@jimpavia

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