Risky business?

When it comes to investing, ups and downs are just part of the game

In financial circles, risk is a common conversation thread. Investors often try to determine whether their potential for return is greater than their perceived risk.

Some people are eager to take investment risks because they are hungry for the opportunity of a big return (key word = opportunity). Others are far more conservative, feeling squeamish about even the slightest market dips.

It's important to understand that ups and downs -- even when they are substantial -- are not necessarily cause for concern. The last few weeks are no exception. We've seen some sizable spikes and some daunting dips, but our goal here is to stay on course. When you take a step back and look at the big picture, you realize these patterns are reminiscent of a much more traditional market. This just feels uncomfortable to a lot of us because we've been enjoying an uncharacteristically long and steady climb.   

What we're seeing is not permanent loss (loss that can never be recovered). We're merely observing the very normal ebb and flow of the market. No need to get rattled by blips on the radar. We need to focus instead on the upward trend.

Remember: risk, reward and volatility go hand in hand. When you have an opportunity that could yield a hearty return, go for it! Just don't let the little ups and downs rattle you along the way.

Jeff