2009 Portfolio Risk Tolerance 
The Chicago Financial Planner
JUNE 13, 2022
Ideally you’ve been rebalancing your portfolio along the way and your asset allocation is largely in line with your plan and your risk tolerance. You should continue to monitor your portfolio and make these types of adjustments as needed. Focus on risk. If not perhaps you are taking more risk than you had planned.
Darrow Wealth Management
JUNE 27, 2022
Between 2000 – 2009, the cumulative total return for the S&P 500 was negative 9.1% equity may be able to help reduce risk in a portfolio. By way of example, consider this hypothetical 60/40 portfolio of stocks to bonds. By way of example, consider this hypothetical 60/40 portfolio of stocks to bonds.
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Nationwide Financial
JANUARY 11, 2023
You have to go back to 2009 to find a similar consistent fear among equity investors. But volatility can also highlight the importance of investors understanding their risk tolerance. For a glimpse of how volatile stocks were last year, consider the VIX Index, often used as a gauge of fear or stress in the stock market.
The Irrelevant Investor
MAY 4, 2016
For comparison, the recent bear market from 2007-2009 experienced just four. You must have a portfolio that truly matches your risk tolerance- not your risk tolerance today near all-time highs, but your actual risk tolerance. Data provided by Dimensional Returns 2.0.
The Irrelevant Investor
FEBRUARY 20, 2020
I had Nick Maggiulli run some numbers for me on what a 60/40 levered portfolio would have done compared to the unlevered version. Prior to 2009, we used SPY and IEF and multiplied each daily return by three times, like the levered ETFs do. The chart below shows that the composition of the original 60/40 portfolio varies wildly.
The Irrelevant Investor
FEBRUARY 19, 2019
There is portfolio construction and then there is portfolio oversight. Constructing a good enough portfolio isn't nearly as difficult as the investment industry often makes it out to be, but overseeing our portfolio while managing our emotions is probably still harder than we give it credit for. This is not advice.
Validea
NOVEMBER 29, 2023
And so even though current portfolio values might be down, the expected future returns are higher. Over the last 25 years, we have seen four bear markets (1999-2002, 2008-2009, 2020, 2022) and numerous market corrections (10% losses). Sector Concentration Risk: Overexposure to one sector can increase risk.
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