Is increasing risk tolerance in portfolios to make up for recent drops in valuations a good idea?
The Globe and Mail, September 2023
Darcie Crowe interviewed by the Globe and Mail on the pitfalls of increasing risk tolerance given recent market performance, inflation, interest expenses and more.
Ms. Crowe understands why many investors are uneasy about their short-term investment performance. She says most equity indices remain below the highs reached in early 2022 and investors have now seen 18 to 20 months of below average returns. They may be falling behind where they had expected to be in reaching financial goals.
“Compound that with inflation and interest expenses likely increasing for those with mortgages or other debt outstanding, and you can clearly see why many clients are seeing their investment goals and objectives affected adversely by the recent market environment,” she says.