Sentences with phrase «psychological risk tolerance»
The inverse applies to households with either low financial or psychological risk tolerance, who should take the more circumspect fixed - rate mortgage route.
https://www.mortgagebrokernews.ca/
Taking these market conditions into account, CanWise Financial president James Laird stressed the need for brokers to help their clients assess and understand their financial risk tolerance and psychological risk tolerance.
Psychological risk tolerance is a household's capacity to manage the psychological tension and possible stress associated with rising rates,» Laird explained in an interview with RateHub.ca.
Your willingness to tolerate risk — also called your psychological risk tolerance — introduces the emotional side of investing.
Risk tolerance involves having a thorough understanding of someone's psychological risk tolerance and how much of a drop in their portfolio they can handle psychologically before they want to sell.
Not exact matches
Published in Psychological Science, the group concluded that «high - power posers experienced elevations in testosterone, decreases in cortisol, and increased feelings of power and tolerance for risk.»
Power Posing: Brief Nonverbal Displays Affect Neuroendrocrine Levels and Risk Tolerance, writing for Psychological Science found at http://www.people.hbs.edu/acuddy/in%20press,%20carney,%20cuddy,%20&%20yap,%20psych%20science.pdf.
This is because the risk - aversion and risk - tolerance of investors is essentially psychological, can change quickly, is not grounded in «fundamentals,» and has to constantly be gauged through the analysis of market internals.
With no human advisor to call for psychological support during a market downturn, it is critical to have a portfolio that is properly diversified and caters to your personal risk tolerance.