Saturday, June 1, 2013
What is Risk?
Sometimes it makes sense to go back to to your roots and ask yourself, what is RISK really?
Saturday, October 22, 2011
Top 10 default retirement age risks for employers
The abolition of the default retirement age will have several knock-on effects for employers. What is most at risk?
source
source
Friday, September 2, 2011
Don’t Stop Thinking About Tomorrow
“A short quiz:
If you plan to eat hamburgers throughout your life and
are not a cattle producer, should you wish for higher or
lower prices for beef? Likewise, if you are going to buy a
car from time to time but are not an auto manufacturer,
should you prefer higher or lower car prices? These
questions, of course, answer themselves. But now for the
final exam: If you expect to be a net saver during the
next five years, should you hope for a higher or lower
stock market during that period? Many investors get this
one wrong. Even though they are going to be net buyers
of stocks for many years to come, they are elated when
stock prices rise and depressed when they fall. In effect,
they rejoice because prices have risen for the
“hamburgers” they will soon be buying. This reaction
makes no sense. Only those who will be sellers of equities
in the near future should be happy at seeing stocks rise.
Prospective purchasers should much prefer sinking
prices.”
Source
If you plan to eat hamburgers throughout your life and
are not a cattle producer, should you wish for higher or
lower prices for beef? Likewise, if you are going to buy a
car from time to time but are not an auto manufacturer,
should you prefer higher or lower car prices? These
questions, of course, answer themselves. But now for the
final exam: If you expect to be a net saver during the
next five years, should you hope for a higher or lower
stock market during that period? Many investors get this
one wrong. Even though they are going to be net buyers
of stocks for many years to come, they are elated when
stock prices rise and depressed when they fall. In effect,
they rejoice because prices have risen for the
“hamburgers” they will soon be buying. This reaction
makes no sense. Only those who will be sellers of equities
in the near future should be happy at seeing stocks rise.
Prospective purchasers should much prefer sinking
prices.”
Source
Tuesday, July 5, 2011
Stocks Are Less Risky Than Bonds
It is not stock investing that is risky. It is valuation-uninformed stock investing strategies that are risky. The risks of stocks can be largely avoided by those willing to give consideration to the effect of valuations on long-term returns. It is much harder for investors to avoid the risks of bonds, since inflation is unpredictable and constitutes the biggest risk for bond investors. For the valuation-informed investor, bonds are more risky than stocks.
source
source
Sunday, July 3, 2011
Saturday, June 4, 2011
Friday, May 27, 2011
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