Taking a look at the amount by which your mutual fund portfolio could drop in a year will give you a feeling for just how appropriate your fund portfolio risk level is relative to your risk tolerance. (aaii.com)
Lowering your correlation to the markets is invaluable, as is lowering your overall portfolio risk levels. (allfinancialmatters.com)
People with high risk aversion, whether it's because of cash flow risk or just general uneasiness about equity volatility, should certainly reduce their portfolio risk level. (earlyretirementnow.com)