People tend to view life similar to how they view their investments. When investors see breaking news or major headlines on current events that may have a negative impact on the world, they tend to view that as a risk within their portfolio. There are endless possibilities of what might happen. We can’t manage all the possibilities, but what we can manage is the probabilities through diversification. Life happens and always will, we will never be without risk but it’s crucial to look at probabilities to monitor your investments. David Cook, CFP® shares how the nature of risk works in investments and explains how you should view probabilities versus possibilities when managing your investment portfolio.
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