How to Handle Risk in Your Portfolio

Everyone has a different level of risk tolerance. Volatile markets, however, can make anyone questions their own decisions when it comes to the makeup of their portfolio. The reality is that long-term investors don’t make decisions based on what’s happening in the market now. They buy good companies and hold them for a long time. That does not mean avoiding risk. Instead, it’s about figuring out what level of risk you’re comfortable with and understanding that even good companies may have major dips (often for silly reasons).