Brittany Waldrep

You mention the stock market and most people hove mixed emotions about risk and reward. Some seem to react almost viscerally to risk particularly in a dawn market or a recession, when in the mind of the mass public risk turns into RISK’
Granted, as of this writing we are experiencing one of the worst bear markets in history. In times like this it’s extremely hard not to get emotional and want to run for the hills. But this is exactly when it’s essential to maintain a long-term perspective. Every kind of investment has some inherent risk whether the investment is stocks, bonds, real estate, or gold. In fact risk is a part of everything we do— from investing to relationships to business. Risk is a part of life.
Given this reality, what is your best defense? Understanding how much risk is appropriate for your circumstances and creating a portfolio to match, In the late nineties, when the stock market was going straight up, investors didn’t think too much about risk—it simply didn’t seem real, But once people suffered severe losses, their tolerance for risk suddenly came into clearer focus.
Carrie tells me I’m a risk-taker: that I ski aggressively and that I’m a tough businessman. That may be true, but I would qualify that by saying that I take risk in a calculated way. I wouldn’t take risks if I were skiing for the first time. I’d find an instructor and rely on help and advice from a pro. But because I have a fair amount of experience, I do ski fast—if the conditions are great I go into the lodge as soon as things get ugly My intention is to always stay in control.
I handle investing risk in the same way I stay alert and informed, so that when I take a risk, I do so with awareness and understanding And as an investor you can do the same thing As Carrie explains in the text if you have the proper asset allocation and are adequately diversified, you will be able to take an appropriate risk Of course I know there are no guarantees and that things can still go wrong But I know also that I’ve done all? can to minimize unnecessary risk And that to me, is enough.