By Troy Tanzy
Whether we realize it or not, we are constantly assessing and moderating risk: When and how would it be safest to cross this busy street? Is this company’s website secure enough for me to hand over my credit card information? Should I purchase this produce from the grocery store even though the news says some of it may be contaminated? Yet, when it comes to our investments, some people seem to turn off this ability to assess risk, preferring instead to make use of “set it and forget it” index funds that track the movement of potentially volatile market indexes.
It seems counterintuitive. Passive investors are no strangers to assessing and moderating risk. When driving down even a quiet, neighborhood street, they wouldn’t think twice about checking their mirrors or slowing…
