Markets May Be Volatile, but Risk Tolerance Isn’t, Pt. 2
A key point from FinaMetrica's research: investors are ultimately driven by two factors: their risk tolerance and their risk perception. Advisors' challenge: managing clients fluctuating risk (mis-)perceptions.
Markets May Be Volatile, but Risk Tolerance Isn’t
What's changing through market cycles is not the client's risk tolerance, but instead risk perceptions.