Risk is such an essential component of investing success that I have covered it, in detail, twice before on this show. But today I chat to the godfather of risk measurement, Paul Resnik of FinaMetrica, and go deep into the science of investment risk.

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In this session you will discover:

• The science behind our tolerance for investment risk
• Why our risk tolerance doesn't' change over time
• What DOES change over time
• The difference between tolerance for risk and capacity for loss
• Paul's view of how the financial services industry is getting risk tolerance measurement wrong
• The benefits of deeply understanding your risk tolerance
• The practical benefit that a correct risk tolerance measure will have on your portfolio planning
• The future of ‘robo-advisers'

Key quote from Paul:

“You should never be surprised by what happens to your portfolio; risk tolerance gives you a framework for understanding performance, whatever your capacity and needs are”

For a full transcript of my conversation with Paul Resnik, hit the big button below:

Join the conversation

I love to read and respond to your comments, so please do join in and share: Question: Have you ever been surprised by how your portfolio has performed? What did this teach you about your own risk tolerance?

Resources

Previous sessions on Risk: Session 16 and Session 106

Do your own risk tolerance profile here: myrisktolerance.com

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