Lessons in investing

Lesson 2: What is risk?

All investments carry a degree of risk. As a general rule, the more risk you take, the greater the expected returns you could receive. As an investor, you need to ensure your portfolio is structured according to the amount of risk you need, want, and are able to bear.

AcuityINSIGHT: Live by performance, die by performanceThis latest Insight 'Live by performance, die by performance' suggests that investors do well to heed the common risk warning that 'Past performance is not a guide to future performance'. We make use of the latest performance persistence data from SPIVA, alongside a brief case study of ARK Innovatio

AcuityINSIGHT: Digital assets and blockchain technologyThese days, a week rarely goes by without the financial media making reference to investors' good and bad experiences in the world of digital assets. As stories around cryptos, NFTs and blockchains become more frequent it is worth taking a step back and revisiting some key investment principles befo

AcuityINSIGHT: Time in the market vs. timing the marketWe run an experiment using a basic 'on a roll' momentum style strategy and a basic 'contrarian' style strategy compared to a buy-hold-rebalance 50/50 split between bonds and equities. Neither timing strategy delivers a material return difference, but both are materially more volatile than the buy-ho

Lessons in investing

Lesson 2: What is risk?

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