Risk ON or risk OFF?
So far this year (as of 8/22) the market is positive, up around 5-7% depending on which index you look at. It has been a good time to be invested….if you closed your eyes!
On February the 11th the market was down over 10% for the year. It rallied into the end of June, then the market lost a quick 5% keeping it in the red for the year as of June 27th. Since June 27th we’ve been on a positive run. So, if you hung on thru all of that then good for you, it has benefited you to be RISK ON.
My question is, how many of you are RISK ON people? Are you willing to lose 10.5% in 6 weeks like we did at the beginning of the year? If not, then you are NOT a risk ON person. If you are not a risk ON person then you cannot expect risk ON results. There is and always will be a direct relationship with risk/reward. You will get paid for the risk you take IF you can take it. For most clients that we deal with, they aren’t willing to take the full risk to get the full return of the market. That’s great if the market is going backwards but not so much when the market is positive. But that’s the tradeoff! You cannot be risk ON when the market is up and risk OFF when its going down.
You can take our free online risk assessment quiz to see where you fit. Go to our website and click on the “what’s your risk number” button at the top right.
Are you risk ON or risk OFF?