Last year was stressful at best for investors at all levels.
The Federal Reserve cut interest rates several times after years of growth.
President Trump really leaned into his trade war with China.
The stock market hit some notable highs and lows.
While recession chatter has quieted, 2020 is still off to a wild start.
And if you read too far into the financial columns, youre going to work yourself into a frenzy.
A Marketwatch post said to stay bullish this year.
Yahoo Finance had the most unhelpful headline, Most experts predict gains, some expect losses.
So who are you supposed to trust?
The answer might surprise you.
The answer is yourself.
The people who came through the last recession tend to benchmark to it too much, he explained.
If youre in the right allocation, maybe you wouldnt be so worried.
To evaluate your risk tolerance, dont think about pie-in-the-sky positive returns.
Think about all the negative scenarios that could take place, said Saglimbene.
Can I sleep at night if my investments dropped X% (fill in the blank)?
And dont forget your timeline, too.
Allocating your assets should rely in major part on your age and time until retirement.
Right now, the ratio is fairly high, indicating modest future returns.
And dont resist if you feel that risk tolerance changing.
Maybe you confused yourself into thinking you had a higher risk tolerance than you really do.
If you want to be more comfortable this year, can you negotiate a raise?
Take on a side hustle youre passionate about?
