Remove 2008 Remove Assets Remove Risk Tolerance
article thumbnail

Five Things to do During a Stock Market Correction

The Chicago Financial Planner

Ideally you’ve been rebalancing your portfolio along the way and your asset allocation is largely in line with your plan and your risk tolerance. For example during the 2008-2009 market debacle I looked at funds to see how they did in both the down market of 2008 and the up market of 2009. Focus on risk.

article thumbnail

Risk Tolerance Dysfunctions

Inside Information

For more years than I’d care to name, I’ve been trying to put my finger on exactly why I have a such a huge problem with the traditional (Think: Riskalyze, now Nitrogen) risk tolerance assessments in the financial planning profession. You can actually test various bear markets and adjust accordingly.)

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Super Bowl and Your Investments

The Chicago Financial Planner

The New York Giants (an old NFL team) won in 2008 and the market tanked in what was the start of the financial crisis. Any investment strategy that does not incorporate your goals, time horizon, and risk tolerance is flawed. Perhaps it’s time to rebalance and to rethink your ongoing asset allocation. Costs matter.

Investing 184
article thumbnail

How to Determine Your Client’s Risk Capacity

BlueMind

However, it should be well understood that a client’s financial profile includes their risk tolerance and their risk capacity. In this article, although we will be focusing on the latter one and why it is significant to determine your client’s risk capacity let’s first understand the difference between the two.

article thumbnail

The Four Most Dangerous Words In Investing Are: ‘This Time It’s Different.’ – Sir John Templeton

Yardley Wealth Management

Think of investors who sold during the financial crisis of 2008-09, only to miss one of the strongest bull markets in history. By its nature, diversification is designed to align an investor’s goals, time horizon, and risk tolerance. A diversified portfolio is designed to help manage risk during market cycles.

article thumbnail

Stock Market Highs and Your Retirement

The Chicago Financial Planner

At some point we are bound to see a stock market correction of some magnitude, hopefully not on the order of the 2008-09 financial crisis. If so, this is a good time to revisit your asset allocation and perhaps reduce your overall risk. Manage your portfolio with and eye towards downside risk. Review and rebalance .

article thumbnail

For First Time In A Decade, Bonds Are Exciting

Validea

Gundlach made the remarks during a recent webcast, where he also relayed that building “portfolios in fixed income that yield 6% to 7% and low double digits depending on risk tolerance” would now be a possibility. of the fund’s assets are in government bonds, while 9.3% Treasury bonds as a hedge. Currently, 9.4%