Did You Tell Your Financial Advisor You Were Prepared To Ride Out Down Markets?
Do you remember when your financial advisor asked you what you would do if the stock market was down 10%? 20%? Together you explored your tolerance for risk. In that theoretical conversation, you didn’t have the advantage of knowing the details of why stocks had fallen. If this conversation happened during the last 10 years, it was in the context of a seemingly unstoppable stock market rally that began in 2009 as the world was emerging from the global financial crisis. It might have been easy to say that a 20% decline wouldn’t bother you, perhaps because the markets had been benign for so long...