The risk business
Article Abstract:
Investors accept risk more readily in bull markets, and this is true in the United Kingdom in 1998. Investors have traditionally received a risk premium for investing in equities, and there is a debate over whether it is high enough, and whether it should exist at all. Some theorists argue that equities are safer than government securities over the long term. This could mean that equities are cheap, but investors are faced with a particular type of risk when they buy equities. This risk is that stock prices tend not to perform well in times of recession and this is when investors like to have high returns since their other sources of income may drop.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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The rationality in volatility
Article Abstract:
Stock prices have been volatile when dividend growth has been smooth, and one reason for this may be a self-fulfilling prophecy due to investors' beliefs in stock price volatility. Investor irrationality may stem from over-confidence in the ability of investors to forecast earnings. Prices may overshoot because investors do not give weight to news that contradicts their forecasts. Investors may benefit from investments in risky assets, since returns are high.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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The lessons of 2000
Article Abstract:
Lessons related to investment risk and other issues can be learnt from the performance of financial markets in 2000.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 2000
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