Risk Tolerance

Investors can always expect uncertainty. While volatile periods like the one we’re experiencing now can be intense, investors who learn to embrace uncertainty may often triumph in the long run. Reacting to down markets is a good way to derail the progress made toward reaching your financial goals.

The S&P 500 Index dropped 19% in the Summer of 2011, the most recent instance of a market correction of 15% or more. You may remember it.

Looking at your ability to take on risk is one thing, but the ability to accept loss is very different. Don’t get these confused. These two little words “risk” and “loss” are not interchangeable.

Risk is the potential for a loss.