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URL:  https://boards.fool.com/my-risk-tolerance-is-higher-than-most-but-even-30075306.aspx

Subject:  Re: Doh! Is it time to take the loss? Date:  6/2/2012  7:26 AM
Author:  billjam Number:  70738 of 93060

My risk tolerance is higher than most but even going into the 2000 popping of the tech bubble I was only 85% stocks. Between the market action and my own tweaks I'm down to 68% stocks, although my target is 70%. I'm retired and live on IRA withdrawals, Social Security, and a modest amount of interest and dividends.

Recovered nicely after 2000 and 9/11 downturns. 2008 crisis hit me much harder but I've recovered much of that too. In hindsight I wish I'd sold it all June 30 last summer and it's starting to look like this year will be a repeat but started early.

If I knew what was going to happen Europe I'd be able to give specific advice. For me a disproportionate part of this year's decline has come from international positions. I'm still bullish on America and American stocks. (Love anything with a solid balance sheet and good dividends.) I expect a bumpy ride well into next year.

Politically I have no hope Congress will do anything (Democrats, Republicans or Tea Party) until the gun is at their head. That uncertainty is riling markets and it will get worse as the end of the year approaches. We need compromise and none of the players are willing to do it. Slash and burn is pushing Europe into a recession. We don't need to go there but we can't continue on our current path either.

Americans and American businesses are amazingly adaptable and I still believe we will somehow stumble through this. I just don't know exactly how or when. So adjust your portfolio so you can sleep at night and hold on for dear life.
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