Look at their account history… proof is in the pudding!
Sanjib Saha
5 months ago
What did they do during the height of a market turbulence (e.g., first half of 2020, last quarter of 2018, etc.)? Buy, Sell, or Do Nothing? I never knew my tolerance level until the 2008 financial crisis.
On a lighter note, there might be a (weak) correlation between risk tolerance and the frequency of checking portfolio balance. I have a feeling that people with high risk tolerance can go much longer without checking market performance 🙂.
Nicholas Clements
5 months ago
If the investor sells at the first sign of a market correction then there’s little risk tolerance.
Look at their account history… proof is in the pudding!
What did they do during the height of a market turbulence (e.g., first half of 2020, last quarter of 2018, etc.)? Buy, Sell, or Do Nothing? I never knew my tolerance level until the 2008 financial crisis.
On a lighter note, there might be a (weak) correlation between risk tolerance and the frequency of checking portfolio balance. I have a feeling that people with high risk tolerance can go much longer without checking market performance 🙂.
If the investor sells at the first sign of a market correction then there’s little risk tolerance.
How well they sleep the night of a market crash.
I think JP Morgan said, “sell to the sleeping point.”