In the initial stages of the pandemic and the worldwide lockdown, risk tolerance took a big hit, which many struggled to recover from. Risk tolerance is a trait that can be made adaptable to its circumstances. In a sense, risk tolerance was dancing with uncertainty that picked up pace according to the beat of the pandemic. In a gist, if a comparison were to be made between pre- and post-pandemic risk tolerance, the pre-pandemic era could be understood as a time with high optimism and herd behavior. Financial risk tolerance: A psychometric review.

Source: Economic Times June 29, 2024 06:01 UTC