Take a minute to think about something unpleasant: How a sharp and sustained drop in the stock market affect your personal finances?
Consider this an exercise in risk management. The intention is not whether you think the market will collapse or if it is optimistic or pessimistic. Personal risk management is not about that. The question here is: if the market falls for an extended period, how will impact on their ability to earn income today and future? Even more important, take it into account when designing your investment portfolio?
I doubt it. In fact, I worry that one of the problems that affect both stock market for dummies investors and their financial advisors is that allocate resources based on how people feel (their aversion or risk tolerance) and what he believes (a bullish or bearish view on the stock market) rather than how much risk you can tolerate their personal finances.
To make it clear: as part of any investment allocation strategy is necessary to determine if you are a share, on revenue that can fluctuate sharply with the market, or a bond, with yields that are less flashy but more stable. Insurance will discover that the level of risk you are taking is much higher or lower than imagined.
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