Investment risk does not always arrive wearing a warning label. Sometimes it sneaks into a portfolio disguised as a hot stock, a familiar company, an aggressive allocation, or a perfectly reasonable decision that made sense several years ago.
That creates a tricky problem: A portfolio can look successful on paper while carrying more risk than its owner can comfortably handle. Risk depends not only on what an investment might lose but also on when the money will be needed, how concentrated the holdings are, and whether the investor can financially and emotionally handle a downturn.
