FA
FOUNTAIN ASSET CORP
stock CVE

I can answer/summarize as a FA / analyst.
Banks and most wealth management companies identify your risk tolerance by having you fill out a questionnaire (e.g. if this falls 20% how would you react...). Most of the time, people fill it out not knowing that a 10% to 20% decline in various years (or intra-year decline of 10% to 15%) is normal. So they tick the low risk or some medium risk section which then automatically puts you in the 60/40 or some bs balanced product that brings 5% to 6% annualized returns.
In reality though, most should be 100% equities. They are the drivers of performance and investment return and if you are on the younger side, you should 100% be invested in equities. But again, people don't understand that yeah you might lose 10% to 20% but over time it won't matter because you'll have much more in gains/returns on top of recovering from whatever you lost.

I can answer/summarize as a FA / analyst.
Banks and most wealth management companies identify your risk tolerance by having you fill out a questionnaire (e.g. if this falls 20% how would you react...). Most of the time, people fill it out not knowing that a 10% to 20% decline in various years (or intra-year decline of 10% to 15%) is normal. So they tick the low risk or some medium risk section which then automatically puts you in the 60/40 or some bs balanced product that brings 5% to 6% annualized returns.
In reality though, most should be 100% equities. They are the drivers of performance and investment return and if you are on the younger side, you should 100% be invested in equities. But again, people don't understand that yeah you might lose 10% to 20% but over time it won't matter because you'll have much more in gains/returns on top of recovering from whatever you lost.