Reassess your risk tolerance when the market is calm

HighTower Podcast: Collective Wisdom

Jimmy Hausberg from The Hausberg Group and Michael Policar of HighTower Bellevue discuss the importance of properly assessing risk tolerance and setting appropriate asset allocations, noting that current market conditions -- with the market near highs but not seeing gut-wrenching volatility -- are ideal for making calm, rational decisions. Hausberg noted that few investors he has seen in his career have a good handle on risk and how they really deal with it, while Policar noted that investors who only consider their risk tolerance after a big market move tend to make mistakes when the market hits the bottom of a move or a cycle.