Risk Tolerance Changes as Primary Election Season Comes to a Close

It is time for a moment of reflection.

We now have two candidates. Regardless of political leanings, we can likely agree:

• The two candidates are polarizingly different
• We do not yet know who will win the general election

In the face of this uncertainty in the presidential elections, Merrill Lynch noted that the markets are likely to display additional volatility. It is not just the market responding…individual investors are also reacting. A client’s risk tolerance is more likely to fluctuate in the presence of so much uncertainty. Historically, risk tolerance was treated as an annual or one-time check-the-box activity, but does that process still suffice in a year like 2016?

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