Ross Naylor                      +48 (22) 389 65 70 (w)                      +48 512 275 706 (m)                      ul. ...
factors that you should take into account: your age,         investments are suitable.]career prospects, the time horizon ...
Call me: +48 (22) 389 65 70 (w) +48 512 275 706 (m)
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Issue18 - What is Risk?


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Issue18 - What is Risk?

  1. 1. Ross Naylor +48 (22) 389 65 70 (w) +48 512 275 706 (m) ul. Królewska 27 lok 411 Warszawa 00-060 Poland What is Risk? The risk button seems to have been well and truly switched on again. The crisis and its causes are supposedly behind us and investors are A Question for You! piling back into themarket to get a piece of the action (they may be 24 Suppose one year ago you invested EUR250,000 in amonths too late, but that is a story for another day). portfolio.Before you do the same or if you have already done so, it The market has since gonewould be worthwhile asking the following questions. down and your investment is now worth EUR218,000. What is risk? How would you react? How much of it can you handle? [Your answer, particularly whether you would be moreRisk is the chance you take of making or losing money likely to sell the proceeds andon your investment. The greater the risk, the more money move to a safer investment oryou may lose or gain. So as an investor, it is important to alternatively view it as andetermine how much risk you are willing to take. opportunity to invest more, should be taken into accountWhen assessing your attitude to risk, there are many when deciding whether your
  2. 2. factors that you should take into account: your age, investments are suitable.]career prospects, the time horizon of your investmentand the needs of your family. You should take time toevaluate your needs and the trade off between risk andreturn.To decide your risk tolerance, ask yourself what kind ofinvestor you are. There are f our broad categories ofinvestor: conservative, moderately conservative,moderately aggressive and aggressive. 2 Economics ProfessorsIf preserving your capital is your main concern, then youare a conservative investor. You want to avoid market 2 economics professors areups and downs and have a pref erence for stability of crossing the quadrangle. Theycapital over a chance to earn higher returns. pass a USD100 bill on the ground but dont pick it up[The rest of the article can be found here] because they know that in an efficient world, it wouldnt be there as somebody would have3 Reasons for Investing in already picked it up.Healthcare Companies Disclaimer 1. Aging populations in the developed world. Those over The views expressed here are my own. 65 have three times as many They are not necessarily shared by health visits per year as AES International. They are subject to people under 45. change at any time based on m arket and other conditions. In the US, the oldest of the 78 This is not an offer or solicitation for the million postwar babies will purchase or sale of any security and reach 65 this year and the should not be construed as such. youngest in 2029. References to specific securities are for illustrative or informational purposesThe US Government estimates that Medicare and only and are not intended to be, andMedicaid expenses will leap from 6.4% of GDP this year should not be interpreted as,to 10.7% in 2029. recommendations to purchase or sell such securities.2. Technological advances are driving patient demand for My day job is as a qualified financialmore complex (i.e. expensive) medical services. planner. This entails me giving my clients advice on maximizing the returnsThey are also keeping people alive for longer thus on their investments within theirincreasing demand for medical care. specified risk parameters. This may or may not involve me recommending3. Obamacare. 32 million more Americans will be some of the securities listed above.covered by health insurance under the new health carelaw, an 11% net addition by 2019.
  3. 3. Call me: +48 (22) 389 65 70 (w) +48 512 275 706 (m)