When you hire a financial advisor, sign up for a 401(k) at work, or otherwise get started with a new investment plan, one of the first questions you'll try to answer is "what is your risk tolerance?" Risk tolerance, an investor's ability and willingness to tolerate losses for the prospect [...]
When you engage a financial advisor, enroll in a 401(k) at your workplace, or initiate a new investment strategy, one of the pivotal questions often posed is about your "investment risk tolerance." Understanding your risk tolerance – a crucial aspect in an investor's capacity and willingness to endure potential losses [...]
Summary: Stocks rallied in the first half of 2023, led by growth stocks, especially tech stocks, especially AI stocks. While the US economy has performed better than was generally expected a year ago, rising interest rates have been leading to a rising tide of debt defaults and if this trend continues [...]
2022 was a bad year for both stock and bond markets around the world, something I covered in detail in my last post. But there's a silver lining to last year's storm: bad returns over the short term often means better returns over the long term. In fact, most investors [...]
It's a new year, 2022 is behind us, and good riddance as far as many investors are concerned. As inflation soared to multi-decade highs, war broke out in Europe, and the world's second-largest economy remained in lockdown, financial markets around the world recoiled and shed trillions of dollars of investor [...]
