7 Steps to a Great Risk-Management Discussion

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3 Methods for Measuring Risk

Risk took a backseat during the liquidity glut as investors willingly took on more risk to earn more return. Now with the markets down 40%, risk management has resurfaced as a critical portfolio management tool. Here's a look at three approaches to measuring risk: historical, momentum, and reversion to the mean.

Risk Tolerance Can't Be Measured Like a Shoe Size

Even if investors can articulate how they'd react under a wide variety of market moves, portfolio outcomes, and circumstances with individual investments, mood changes can put their comfort level into a tailspin.

Turning Negative Outlooks Into Positive Approaches

When experiencing uncertain market outlooks, FAs may want to start thinking about ways to project both positive attitudes and positive returns for their clients.