Risk Management

The market can be a scary place for many individuals. If you realize there is some degree of uncertainty but you’re unsure how to financially deal with that risk, Capstone Investment Financial Group can help.

Measuring Risk

Investments of all types come with some degree of risk. Whether in the form of high inflation, volatility in capital markets, recession, or bankruptcy, economic risks are a part of every financial decision you make. Since you can never eliminate risk, at Capstone we focus on aligning the risk in your portfolio with your financial goals and tolerance.

We use a measurement called maximum drawdown which measures the largest single drop from peak to bottom in the value of a portfolio based on a certain strategy. They help our financial advisors prepare portfolios based on potential risks that are assessed.

Reduce Risk with Diversification

One way that clients can reduce investment risks is to diversify their portfolios. Diversification occurs when you mix a wide variety of investments within a portfolio. Owning several investments helps reduce the overall risk found in each of your investments, which keeps volatility low.

To assess volatility and help you determine how much risk your portfolio can safely handle, we use precise technology to calculate how much risk you may be willing to handle, and whether or not particular opportunities are worth the risk in the long-run.

By making calculated investments and taking appropriate risks, we can you work towards your financial goals. Connect with our financial advisors to better align risk tolerance with your portfolio.