The Cruel Law of Percentages

The Cruel Law of Percentages

by Aurora Financial — Posted on September 22, 2022

Are you aware of the risk your portfolio is exposed to and how much risk can you realistically handle?

Below is a graph that shows how market falls really effect your portfolio, and what growth is needed after a fall to recover those losses.

Source: 7IM

A portfolio fall of 25% needs the remaining fund to recover by 33% just to get back to your starting position!

Larger portfolio falls (as some have seen recently) might be catastrophic to your long-term financial goals.

Can you really afford the risk and falls of your portfolio? Come and talk to us about your goals and how we assess your risk.