Today I’ve recorded a very brief message which I hope you’ll enjoy.
What’s on my mind is the investments made by market participants who are basing investment decisions on global benchmarks which are severely distorted and where those investment decisions quite simply don’t price risk adequately.
The below chart should be looked at in conjunction with the podcast. In the hunt for yield investors are pricing risk assets on a relative not absolute basis.
Increasingly, investors are compensated less and less to take more and more risk.
You might be wondering what does this erratic behaviour mean for you as an investor?
It’s a question I focus on in today’s podcast:
Direct download link (right-click and choose “Save As”)
Enjoy and let me know your thoughts by leaving a comment below.
“Don’t spend time beating on a wall, hoping to transform it into a door.” — Coco Chanel