Knowing both your Sleep Number™ and your Risk Number will help you sleep at nightSubmitted by Bond & Devick Wealth Partners on July 8th, 2019
The stock market continues to gyrate around any bit of news around the trade war between the US and China. Turn on the news and you notice rising tensions in the Middle East between Iran, the US and now Great Britain. Two of the largest earthquakes recorded in years rock southern California. The Minnesota Twins are in first place at the All-Star break. These are very uncertain times indeed.
The key to being good long-term investors is to understand there hasn’t been a period of time when there wasn’t a great deal of uncertainty. If you wait for the perfect time to invest it will never arrive – there is always something unsettling in our world and investing requires faith in our institutions, in the companies we invest in and a dose of optimism about the future as well.
For those of you who own a Sleep Number™ mattress you know it adjusts from very soft to very firm and as you experiment over time you will come to find the setting that provides you with your best night’s sleep.
Each of our client’s portfolios also has a number – a Risk Number. Knowing your portfolio’s Risk Number can also help you sleep well at night. Our team puts a lot of effort in designing portfolios that fit each client’s situation. Each portfolio has a corresponding Risk Number – the higher the number the more potential for higher returns and greater volatility. Making sure you are comfortable with the amount of risk you are taking and the corresponding potential for returns helps us keep our clients invested during all sorts of markets and provides investors with the best chance of reaching their long-term investment goals.
Now could be a good time to talk to your advisor about your Risk Number and your investment objective – just to make sure they are in alignment with your comfort level. This could help all of us sleep better at night!
As always, we are committed to remaining balanced and diversified with our focus on the long-term.
The Bond&Devick Team