No flirting, just marry the “Risk”
The benchmark equity indices in many global markets are presently positioned close to their all-time high levels. The equity shares of new age companies, with relatively untested business models, are commanding prices, which could be termed “obnoxious” from the view point of conventional valuation methods. The global debt yields are staying obdurately low, despite higher inflationary expectations and liquidity contraction talks. The market value of cryptocurrencies, one of the youngest asset classes, is also more than US$2trn. In these circumstances, “Risk” is naturally the most talked about, and understandably the most ignored, term in the financial markets. All market experts are highlighting the urgent need to manage “Risk” for investors. Investors’ survey on understanding of Risk A quick survey of household investors’ perception about the “Risk”, and their methods of managing “Risk”, however highlights that “Risk” may actually be one of the least understood, though most talke...