Summary: Risk tolerance is not necessarily tied to age and time horizon, so know what you can stomach. Market timing is a dangerous game and individual investors should be price-sensitive buyers and sellers instead. Adding to underperforming asset classes and trimming those that outperform can be a challenge as it goes against our emotions.
Key take-out: Neither panic nor greed is an investment strategy. Think longer term, stick to a strategic asset allocation plan and remember to diversify and rebalance.
Key beneficiaries: General investors. Category: Strategy.