The Morning Filter The Biggest Risk Investors Face Today
Aug 18, 2025
Christine Benz, Morningstar’s director of personal finance, offers invaluable investment wisdom. She discusses the importance of portfolio diversification and avoiding overconfidence in today’s volatile market. Benz highlights the significance of core investments, such as mutual funds and ETFs, for retirees. She emphasizes the need for annual portfolio reviews and warns against common mistakes investors make during bull markets. Tune in to gain insights on building a smarter investment strategy and setting yourself up for a stable financial future.
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Complacency Is The Biggest Market Risk
- U.S. investors risk complacency after a long run of strong stock returns.
- A shock (slowing jobs or consumer strain) could derail the rally, so vigilance matters.
Begin De‑Risking Around Age 50
- Start de-risking gradually around age 50 by shifting some assets into high-quality short and intermediate bonds and cash.
- Keep growth exposure but build a safer bulwark as you near retirement.
Use Global Market‑Cap For Allocation
- Diversify globally using market-cap weights as a benchmark (roughly 62% U.S., 38% non-U.S.).
- Many investors, especially younger ones, are underweight non-U.S. stocks and should consider adding exposure.
