How to Think About Risk

Nov 30, 2020 10:01:57 AM / by InvestorKeep



Investments are risky. Nothing is guaranteed. Investors understand this and some are willing to tolerate higher levels of risk in exchange for higher potential returns. Investments should be chosen with risk levels suitable to the investor’s short and/or long term goals. This isn’t as easy as it sounds because investment risk changes overtime. An investment's past volatility (up or down value swing) is not an indicator of future returns. Investments that previously experienced low volatility can later experience high volatility, particularly during rapidly changing market conditions. An investor’s risk tolerance may also change and some investments may no longer make sense in their portfolio.

When investment risk changes, InvestorKeep sends alerts highlighting the concern and situation. Like all alerts, investment risk alerts give detailed information as to the reason for the alert and an easy way to share the alert with your financial professional, ensuring your investments match your risk tolerance level.

Investing always carries risk. It’s important to talk with your financial professional about appropriate risk levels for your given situation. The goal should always be accomplishing your specific financial goals with the least amount of risk possible.




Written by InvestorKeep

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