“Invest for the long haul. Don’t get too greedy and don’t get too scared.”
~ Shelby M.C. Davis
Which type of investor you are depends upon your risk tolerance.
Take a look at the index results across the standard investment portfolio categories: Conservative, Balanced, Growth and Aggressive.
These numbers are based on indexes, not managed portfolios.
Pay close attention to their best and worst returns!
Data Source: Fidelity Investments and Morningstar Inc., December 2025. Hypothetical value of assets held in untaxed portfolios invested in US stocks, foreign stocks, bonds, or short-term investments. Historical returns and volatility of the stock, bond, and short-term asset classes are based on the historical performance data of various unmanaged indexes from 1926 through the latest year-end (2025) data available from Morningstar. Past performance is no guarantee of future results.
As mentioned, all of these examples are taken from “cookie cutter” portfolios of index returns to illustrate the serious potential downside of market indexes.
A Conservative index portfolio lost – 17.67%
A Balanced index portfolio lost – 40.64%
A Growth index portfolio lost – 52.92%
An Aggressive index portfolio lost – 60.78%
Could you endure this much volatility in your portfolio?
Call us to discuss our actively managed portfolios and our defensive investment strategies which can reduce your risk exposure to these market indexes.
We can help you know which type of investor you are…
And, sleep better at night.
Your CommonWealth Team
“If you’d like to gain a better understanding of return on investment, get into gardening.”
~ Hendrith Vanion Smith Jr.
