Risk & Allocation
What a bond allocation is actually for
Bonds are held to change how a portfolio behaves in a bad year, not to maximise return.
Risk & Allocation
Time horizon, capacity for loss and what a portfolio is actually for.
21 articles · updated August 11, 2026 · page 1 of 2
Risk & Allocation
Time horizon does more work than risk tolerance
How you feel about volatility matters. When you need the money matters more.
More in Risk & Allocation
Risk & Allocation
Risk tolerance is discovered, not declared
What you say about risk is a prediction. What you did in the last fall is evidence. Only one of them is worth much.
Risk & Allocation
What a risk questionnaire can and cannot measure
A short set of questions produces a single score that bundles together three separate things, only one of which is about your…
Risk & Allocation
Volatility is the feeling; risk is missing the goal
The number that measures how much prices move is not the same as the chance of not having the money when you need it.
Risk & Allocation
Risk you can measure and risk you can only imagine
Some risks come with numbers attached. The ones that have historically caused the most damage did not.
Risk & Allocation
Stated risk appetite rises with the market
The same investor will describe themselves as adventurous after two good years and cautious after a bad one, with no change in…
Risk & Allocation
Your job is already a holding in your portfolio
Your income, your employer shares and your pension can all depend on the same company or the same industry. That is a concentrated…
Risk & Allocation
Rebalancing is designed to feel wrong
It requires selling what has done well and buying what has done badly, which is exactly what your instincts object to.
Risk & Allocation
Asking how much risk the goal actually requires
If a goal can be reached with less risk, taking more adds uncertainty without adding necessity. Almost nobody asks this question.
Risk & Allocation
The largest risk is a plan you abandon
Portfolio risk is analysed in detail. The risk that you will stop following the plan is rarely mentioned and does the most damage.
Risk & Allocation
Most people mean five years when they say long term
The phrase does a great deal of work in investment writing and almost nobody defines it. The definition changes what is sensible to…