In wise books the risk is measured by the standard deviation of expected returns. In other words, how intensively your portfolio value can be "disrupted" in a particular asset class and in a particular country.
More precisely, how much you can get scared and do something stupid. As for me, I don't get scared by price fluctuations anymore. I perceive them as horror movies. When I was a kid, after watching a scary movie we couldn't fall asleep for a long time. And now during a bloody scene we more often yawn or even smile.
So the question is, who is the most susceptible to such horror movies? Newcomers are. And that's despite the fact that most of their portfolio involves money that they haven't even earned yet.
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@retire_at_35
