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:
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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?
Do your own risk tolerance profile here: myrisktolerance.com
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No new reviews this week as I have recorded two sessions in quick succession.
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