Long-Term Investment Risk is a Function of Objectives

Dec 2006 //
Risk vs. Volitility

Long-term risk can be thought of as the possibility of a permanent loss of capital or, my preferred definition, as the possibility of not achieving one’s investment objectives.  ... Basically, the concept of long-term risk is very much a function of one’s investment objectives.  If your objectives require meaningful portfolio growth, it would be risky to consistently hold non-growth investments.