Bear-Market Behavior: Investment Firms and Risk Questionnaires

bear-market behavior: Yet determining your bear-market behavior is surprisingly difficult, according to Market Watch. Most investment firms try to do this by asking you to fill out one of the many risk questionnaires that may vary slightly in detail but for the most part are identical. That's because you can have the theoretically best strategy on the planet and still lose money if you bail at the bottom of the next bear market. They ask questions such as the length of your investment horizon and whether you worry more about not losing money than about not making lots of money. While we may genuinely think we will have the discipline and intestinal fortitude to stick with our strategy through thick and thin, the truth is that almost always we're wrong. These questionnaires are next to worthless, since we don't know ourselves how to answer these questions. (news.financializer.com). As reported in the news.