As an investor, what do you prefer: certainty or uncertainty?
Certainty, of course. We all do.
Really, think twice!
When things seem certain, the future looks bright and we embrace risk taking. When things seem uncertain, it’s hard to imagine things ever getting better, and we shun risk at all costs.
But is there really such a thing as a certain environment when it comes to investing? No. There is always risk in markets, even if you can’t see it, and by extension there’s always uncertainty.
It is only our perception of risk that changes.
When everything seems 100% certain, the risk/reward is never compelling.
Certainty, of course. We all do.
Really, think twice!
When things seem certain, the future looks bright and we embrace risk taking. When things seem uncertain, it’s hard to imagine things ever getting better, and we shun risk at all costs.
But is there really such a thing as a certain environment when it comes to investing? No. There is always risk in markets, even if you can’t see it, and by extension there’s always uncertainty.
It is only our perception of risk that changes.
When everything seems 100% certain, the risk/reward is never compelling.
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