Have We Reached The Point Of Maximum Financial Risk?

I found a very interesting article that was written almost exactly one year ago. The main focus is on a chart, see below, which shows the range of emotions investors go through when holding a fully invested portfolio through a bear market.

It covers the entire spectrum of extremes from the “Point of Maximum Financial Risk” all the way to the opposite, called the “Point of Maximum Financial Opportunity.”


I believe that this chart is timeless, and I am certain that we will see the various stages repeated at some point in the future. Unfortunately, many investors will be able to identify themselves at the various points of the chart, if they stayed invested during 2000-2003.

If you were one of them, hopefully, you will have learned from the experience by planning on using a different approach the next time around.

About Ulli Niemann

Ulli Niemann is the publisher of "The ETF Bully" and is a Registered Investment Advisor. Learn more
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