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Here’s how investors sabotage their portfolios Retirement savers sometimes make investing decisions that can hurt their portfolios if they are not aware of their tolerance level to risk, according to this article on MarketWatch. “Everyone knows they should buy low and sell high, but do the exact opposite, primarily because they do not know their own risk tolerance,” says an investment officer. One such example comes from the 2008 market crash, which prompted many investors to dump their stocks at rock bottom prices, which cost them dearly. On the flip side of that, the bull market in large-caps that has lasted nearly eight years has led many people to have a false sense of stability and prompted them to stock up on equities and take on more risk than they should. Wall Street may be somewhat responsible for its marketing, but the many self-directed investors who read online content to justify their decisions and don’t take a careful measure of their own risk tolerance also share some of the blame, according to this story.
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