The Thin Line

Don’t get me wrong. Choosing this path does not mean waving the white flag in surrender. It also does not mean completely overhauling your risk tolerance or dramatically reducing equity exposure and running for the safety of fixed income all at once. What it simply means is re-calibrating your confidence level.

The fact is confidence operates on a thin line. Possess too little and you will never take enough risk. Possess too much and you will inevitably take imprudent risks. This is why, as with most things in life, having the right balance is critical.