February 2019. While the market increases we’ve enjoyed in January have been most welcome after the past few months, this is likely a good time to revisit what your risk tolerance and true goals really are. Risk tolerance refers to the balance between fear (the ability to sustain losses) and greed (the pursuit of gain). When referring to “risk’, many confuse volatility with absolute loss of capital, and as such, many unsophisticated investors suffered great angst recently. This is where time is a very important factor. A short term market decline may not be relevant unless you have near term needs and have to actually realize a loss. If your goals is longer term though, a short term decline may be a great opportunity to take advantage of discounted prices on quality investments that will produce greater gains in the future, when they are needed. Understanding your risk tolerance, financial situation, needs and expectations is critical when planning your investment portfolio. Get good advice from a professional.