If market volatility keeps you up at night, you may need to change your perspective — or your investments
Does a sharp drop in the stock market make you want to sprint for the exits? You’re not alone. One of the illogical open secrets of the supposedly rational financial markets is that all it takes for a “risk tolerant” investor to become risk averse is a 10% or 20% drop in the Dow Jones Industrial Average.
“Most people say that they can handle a 10% drop in the market, but when their $10 million portfolio drops to $9 million, they react completely differently,” says Alan McKnight, Chief…