Beware, your risk attitude could be changing!

With markets generating high returns, investors could be turning a Nelson’s eye to the pitfalls of using this trend as benchmark

If you have been making merry in the stock market in recent times, beware! You may be vulnerable to a shift in your risk attitude. In this article, we discuss how the market movements since March 2020 could change your expectations of return, causing harm to your financial well-being, and what you can do about it. Your happiness is relative, not absolute. A 15% increase in your salary would make you happy only if your colleagues do not get more than you did. Likewise, a 10% cut in your salary will not make your very unhappy if your colleagues take a larger pay cut.