Am I Taking Too Much Risk?

Historically, the stock markets have performed well over the long-term. The risk in your portfolio should be directly tied with your time horizon, or when you need the money. If you will need the entire principal in the next 6-12 months, do not put any of it in the stock market!  However, if this is money that you will not need for 5 years or longer, then you should probably invest some of it in stocks. Also, with interest rates at historically low levels, many fixed income investors have “reached” for yield and have too much exposure to high-yield junk bonds. High yield/junk bonds (grade BB or below) are not investment grade securities, and are subject to higher interest rate, credit, and liquidity risks than those graded BBB and above. They generally should be part of a diversified portfolio for sophisticated investors.

We have seen that many younger investors are not taking enough risk in their portfolios given their time frame until retirement.

Stock investing includes risks, including fluctuating prices and loss of principal.​ The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.