Showing posts with label volatility. Show all posts
Showing posts with label volatility. Show all posts

No Risk Investing

no risk investingHave you heard of an investment with out risk? I have. At least once a month I get a offer in the mail, email in my in-box or see an ad in the newspaper for a new investment that promises an amazing return with no risk. 


Nothing scares an investor more than risk, and nothing contributes more to risk in investing than volatility.


Just ask investors in 2008 going from the highs in spring to a drop of more than 40%. Since then investors are looking a solution for their investment nightmares. 


Almost every new investment being sold today comes with the selling feature "it does not have the volatility of the stock market". Many come with guarantees, others invest in alternative assets and some invest using a special investment strategies.