A Motley Fool columnist urges investors to assess their risk tolerance before buying stocks. Bank of America has warned of a possible market correction, while JPMorgan CEO Jamie Dimon cited high valuations, geopolitical conflict, inflation and debt as risks.
The writer says the warnings are not a reason to avoid stocks, but suggests considering more cash, diversification and reducing margin debt. The article says margin debt is near record levels and warns that borrowing can magnify both gains and losses.
