What Is Your Risk Score?

Good morning…

I made it about ¾ of the way up Palomar Mountain yesterday which was disappointing. I was not prepared for the mosquitos that were swarming my ears which took their toll on my psyche and energy.

Next time…bug spray!

The mountain has my number as I have a terrible 50 percent completion rate. I plan to get back there a few more times before I head to the Pyrenees.

Onward…

I want to revisit an old product, company idea that I have shared before years back that still does not exist.

I am not sure why people that want to invest do not carry around a ‘digital risk score’ as they surf the web of investing apps and services.

As gambling and the ‘degenerate economy’ expand and speculation as entertainment explodes across the fantasy and investing world the time may be more right than ever.

We have scores for everything from our credit to testosterone to sleep number, but no way to let people know how we think about risk.

Way back, Riskalyze was started by Aaron Klein which was built to help advisors build portfolios for clients. Every year I would ping him to see when he would take his idea to the Stocktwits, Robinhood, Coinbase, Reddit, Fintwit masses as an API. Riskalyze was acquired so obviously there is something to this idea.

As a simple example, someone young who is happy with a 60/40 portfolio might score a 50 and someone all $QQQ might score a 80.

In a way, we have seen versions of this ‘risk score’ back in the crypto fever as people switched their avatars on Stocktwits and Twitter to ‘laser eyes’ and pictures of their ‘Apes/NFT’s’. I don’t think that gave a true representation of someone’s risk profile as it was more a moment in time and a feverish cultural phenomenon.

My risk score has been shaped by early life experiences and my DNA and I wish I did not have to constantly repeat myself as I share ideas across different timeframes, liquidity and markets. Scores would create all sorts of better ways to communicate with like minded people and also give context to the financial content people actually share.

Hit me up if you or someone you know is working on this or want to build it.