The stock market has been acting up lately, with fears about what the Federal Reserve and other central banks will do rippling throughout the global financial markets. Yet, as painful as losses can be, they can be a good guide to show you what your true risk tolerance is.
In the following video, Fool contributor Dan Caplinger looks at how wild moves in stock markets expose the true risk involved in investing in stocks. For those who learn that they're not comfortable with stock volatility, Dan has some guidance on strategies to consider, with a particular emphasis on avoiding ill-advised money moves that often work, but aren't appropriate in the current market environment.
The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report, "3 Stocks That Will Help You Retire Rich," names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.
The article The Silver Lining Behind the Market's Recent Volatility originally appeared on Fool.com.Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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