Well, here we are, Autumn is upon us, and we haven’t had a heat-wave since before the school holidays began: it must be time for an ‘Indian Summer’ now! Since my last piece, the markets have acted in a typically volatile fashion, yet have ended up pretty much the same as they were. I shall have more to say about the year’s ups and downs in the next issue, but now on to the conclusion of my comments on the subject of risk. This final part concerns equities, or shares as they are probably better known. As I have mentioned before, shares are the means by which the ownership of companies is allocated between individuals and corporate or institutional investors. Shares, by their nature, have an inherent risk. Not necessarily the ‘absolute’ risk of total loss, though this can happen, but they have always been regarded as a greater risk than Bonds.
Continue reading Risky Business Part 2 →