Risky Business

Don’t confuse risk with volatility When talking about risk, many investors are actually talking about volatility – the usual ups and downs of investment markets. When the actual return from an investment is lower than expected, investors believe that they have lost money in a physical sense. But in fact they have only lost money ‘on paper’. It is only when they actually sell the investment at the wrong time (when returns are at their lowest) that they permanently lose [...]

2019-10-04T05:43:15+09:30October 4th, 2019|Investment, More than just Finance|

Volatility: 10 key messages for investors

Financial markets can be subject to periods of event-related volatility during which investor confidence can be significantly undermined. Here, we provide 10 key messages to help investors steer their portfolios through volatile times. 1. Volatility is a normal part of long-term investing From time to time, there is inevitably volatility in stock markets as investors react nervously to changes in the economic, political and corporate environment. Above all else, financial markets dislike uncertainty. Yet markets are also prone to [...]

2019-09-16T04:57:54+09:30September 16th, 2019|Investment, Quick Tips|

Musings: The Whole Elephant

There is a famous Indian parable that is taught in philosophy classes throughout the world to prevent absolutism and foster tolerance for the views of others. To paraphrase, six blind men are taken to “see” an elephant for the first time. One man feels the elephant’s tusk and declares that the elephant is like a spear, one man feels the elephant’s legs a