Investors' risk tolerance decreases with the stock market, study finds
Thursday, June 5, 2014 - 11:54
in Mathematics & Economics
As the U.S. economy slowly recovers many investors remain wary about investing in the stock market. Now, Michael Guillemette, an assistant professor of personal financial planning in the University of Missouri College of Human Environmental Sciences, analyzed investors' "risk tolerance," or willingness to take risks, and found that it decreased as the stock market faltered. Guillemette says this is a very counterproductive behavior for investors who want to maximize their investment returns.