Just as the market downdraft was starting a week and a half ago, a Twitter follower sent me a dire warning: stocks were going lower and if I didn’t get out of the market, I would be taking on as much risk as if I were standing on the tracks in front of a moving freight train.
His warning didn’t faze me – I was a happy net purchaser while stocks were falling then and I’ve been spending a good bit of time ever since analyzing companies and preparing my shopping list in preparation for further market drops. His message did, however, get me thinking about the degree to which most people misunderstand the concept of “risk” when it comes to investments.