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Your Risk Tolerance May Be More Fickle Than You Realize
2026-05-15 · via All Articles on Seeking Alpha

Summary

  • Risk tolerance shifts with markets and emotions.
  • Static portfolios miss these swings.
  • Rules and periodic reviews keep investment decisions aligned with long-term goals.
Yellow Red Metal Ball Dollar Symbol on Wooden Libra Scale and Wooden Financial Charts Depth Of Field

spawns/iStock via Getty Images

By James Picerno

Recent research is overturning the entrenched assumption that risk tolerance is relatively stable. New evidence shows it moves far more than most investors realize, which has several implications.

For starters, asset allocation should

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