“Risk tolerance” is a buzzword that’s commonly bandied around in the investment world — and with very good reason.
Although the phrase “no pain, no gain” has some truth — and there will always be some risk associated with making investments — we all have different thresholds of pain to consider. While some will suffer sleepless nights after the value of their portfolio slides by 1%, others can happily grin and bear it following a 10% hit.
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