Sometimes, we in the financial services industry get so immersed in what we do that we kind of forget that the rest of the world may not understand about the terminology we use. In other words, we tend to throw around lingo without checking to ensure that we are being understood.
In an earlier post I introduced a new series that will lay out some of the key risks that accompany investing in various types of securities. This first entry will address the general market risk faced by stock investors.
This week Kevin was quoted in an article examining whether or not to take a bit more risk to generate more yield for your emergency fund. Generally, I’m not a fan of taking on additional risk for funds that are truly designated to protect against emergencies. However, maximizing the yield you receive with those funds makes sense to me.
One of the areas that I think is difficult for investors to truly get their arms around is risk. Specifically, the level of risk individuals are taking when they invest. One of the reasons for the fuzziness is that there are a number of ways to view risk. Warren Buffett views it as the likelihood of permanently losing his capital, or initial investment.
At the urging of digital marketing guru Stephanie Sammons, I’ve just accepted a challenge to publish a Sweet 16 of blog posts in celebration of March Madness.