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Showing posts from May 8, 2011

Taking Stock of Your Risk Tolerance

In the latest unemployment numbers, the US Bureau of Labor Statistics reported that Nonfarm payroll employment rose by 244,000 in April and the unemployment rate edged up to 9.0 percent. Although the economy created 244,000 thousand jobs, the unemployment rate still increased. However, the recent numbers still gave the markets a nice boost on Friday, May 6, 2011. However the day before, Thursday April 5th, there was this massive stampede of investors out of commodities, sending many benchmark indices and the respective funds and stocks that are pegged to these indexes down to levels not seen since 2008. This brings me to the issue in this article- determining your risk tolerance. Accurately determining your risk tolerance is one of the most important steps that you can make in managing and building your investment portfolio over time. Determining your risk tolerance helps you avoid the nervousness and feelings of dread that you may feel when the overall market takes a nose dive, no