Posts Tagged ‘risk appetite’
Chapter 8 – Understanding Risk
Risk is one of the most important components of all kinds of investing – but risk can also be a complicated issue. There are many measures and definitions of risk: volatility – the up and down movement of the market – is just one measure. Traditional investors only worry about volatility when shares are falling.…
Read MoreChapter 3 – Your Investment Horizon
Typically, the longer your investment horizon is, the more aggressive you can be with your investments (depending on the products, programs and strategies you are considering). However, the investment horizon is the investors decision and should support his/her appetite for risk. Saving for a pension might be a higher risk investment, knowing the money will…
Read MoreChapter 2 – Risks and its Implications
To earn a better rate of return than you would expect from a savings account, you need to accept more risk. That means getting comfortable with the fact that your investments will/can go down in value some of the time. The long-term direction of the stock market is up, but it doesn’t rise in a…
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