What Is Risk In Investing?
Shane Hiscock
Director at Locate Buyers Agency | Brisbane’s 5-star property buyers agent | Taking the stress out of property acquisition
I’m always on the hunt for relevant info and I loved this - one of the best articles I’ve seen on this topic for a while. Here are a few paragraphs as a taster...
Risk in investing means a lot of things to different people.
This could be the risk of capital loss; the risk of not having enough investment income or the risk of not having enough to last through retirement.
Volatility
The conventional approach to measuring investment risk is to look at volatility.
This is usually done with a statistical concept called standard deviation which shows how tightly clustered past returns have been around their average in a certain period.
The risk of capital loss
What really concerns investors is not the volatility to the upside (as most of us like stronger returns) but capital loss.
Various attempts have been made to measure the risk of capital loss.
Pretty valuable stuff, I’m sure you’ll agree! Why not check out the whole article here https://propertyupdate.com.au/risk-investing-shane-oliver/ and share your thoughts with me afterwards: call (0402) 024-625 or email me at [email protected].