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.
What the Research Found
The research paper, Can Precious Metals Make Your Portfolio Shine, cited in this article was authored by C. Mitchell Conover, The Robins School of Business,...