Portfolio Diversification

“With two pieces of information, what does the stock market do? It overreacts. I’ve seen this over and over, so many times, it doesn’t seem to bother me. However, my concern is that it might bother you, because I’m so focused on your risk tolerance and how you’re coping with stock market conditions that appear on the front page and how you’re reacting to that. I think the first thing we need to remember is that we have designed your portfolio based on your risk tolerance.

Volatility looks the same across history because human nature is the one constant in the stock market that will never change. You can’t get rid of fear, greed, panic, euphoria, anxiety, or the fear of missing out. Everything around the stock market can change but the stock market itself can never change because human emotions don’t change. As usual, my advice is to stay calm.”

– BARRY M. CORKERN