I don't know if you've been watching the stock market these last few weeks
but here is what happened in a very short 5 day span:
- Wed. Aug 19: DOW down 162 pts or -0.93%
- Thr. Aug. 20: DOW down 358 pts or -2.06%
- Fri. Aug. 21: DOW down 530 pts or -3.12%
- Mon. Aug 24: DOW down 588 pts or -3.57%
- Tue. Aug 25: DOW down 204 pts or -1.29%
In just those 5 days the DOW lost -1,844.9 points or was down -10.54%. From a percentage standpoint it is was even worse for the S&P 500 and the NASDAQ.
That means if you had your portfolio tied to either one of these indexes and you had a balance of $100,000 to start with, after those 5 days you account balance lost over $10,000 and is less than $90,000.
I bring all this up because there are a lot of investors that during good times, are very aggressive with the market, that is until the market gets aggressive with them!
Their balances start to plunge and suddenly they see their retirement nest egg or prize investment portfolio start to shrink very quickly.
What is Your RISK TOLERANCE - Find Out Easily Click Here
What it means is their Risk Tolerance or the level of losses they would take on their portfolio before they want out or at least start to get uncomfortable, was a lot HIGHER than they thought. Their investments and asset allocation should have been a little or a lot more conservative or defensive than it was or is.
If you have ever felt like this (or just started in the last few weeks) and wondered what your RISK NUMBER really is, I have the answer for you.
We have a simple interactive tool on our website where you can answer a few questions and get your personal Risk Number - risk tolerance of swings in the stock market.
To use it just click on the link below and follow the prompts on the page, it's that easy:
While you're using it if you have any questions, feel free to call me here at the office.
W. Edward Newton Jr., CFP
Newton Financial Network
13850 Ballantyne Corporate Place, Suite 500
Charlotte, NC 28277
Phone: (704) 552-8689