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Cullen Roche critiques the effectiveness of "risk profile questionnaires" commonly sent to clients over a 20-year period. He observes that these questionnaires, which probe for emotional responses to large stock market drops, tend to generate similar answers from almost everyone.
Roche suggests that their inherent subjectivity and bias limit their usefulness for truly assessing individual risk tolerance.
Roche has previously compared major investment strategies, noting that BND and bond ladder portfolios share similar average duration and interest rate risk. He has also highlighted that Nvidia has posted strong quarterly earnings for five consecutive years. These assessments build on his approach of closely examining risk factors and performance drivers across different assets.