Being smart with $$ - Are you managing your stock risk?

Stocks could drop 80%?!  They did in Japan.  The Nikkei stock index hit a peak about 26 years ago and then began a fall so severe that 19 years later it was still over 80% lower. Even today it's 58% below that level from 26 years ago. Makes you ask if you are managing your stock market risk.  Stocks are right for many investors but your exposure must be considered within your bigger picture. Some people feel that you can never go wrong with stocks but many people in Japan might disagree. Can that kind of pain happen in the American stock market? Many people would say "No!"  But nobody in Japan thought it would happen there either. Moral: Manage Your Risk.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com