Which factor would least impact an investor's risk tolerance?

The factor that would least impact an investor's risk tolerance is market trends. An investor's risk tolerance is largely shaped by personal characteristics and circumstances rather than external market conditions. Investment goals play a crucial role as they dictate the investor's desired outcomes, influencing how much risk one is willing to take on to achieve those goals. The age of the investor is also significant because younger individuals typically have a higher risk tolerance due to a longer time horizon to recover from potential losses. Similarly, financial knowledge can impact an investor's comfort level with various investment risks, as those with more understanding may feel less anxious about volatility and more confident in managing investments.

Market trends, while they can influence investment decisions in the short term, do not inherently change an individual's underlying risk tolerance. An investor's willingness to accept risk is more deeply rooted in their personal situation and goals rather than prevailing market conditions. Therefore, market trends are less relevant compared to the other factors influencing an investor's risk tolerance.