NEW YORK CITY—With investing, is it possible to be safe? Put another way, is there ever a way to avoid all possible risks associated with a potential investment? That's the subject Ethan Penner explores in his most recent post, as he looks at the nature of risk in investing, and how even seasoned investors can get their assessments wrong.
Penner writes:
"However, unknown to him, he had traded credit risk for duration and price risk. As I survey the investment world, it strikes me that my friend is not atypical in his misunderstanding of investment risk. I see many in today's market making similar mistakes, both novice investors as well as professionals."
He further examines the duration risk and price risk, and ties these in to the many turns of the troubled Stuyvesant Town investments.
To read the full post, "Understanding Risk," click here. To read other posts from Ethan Penner, click here.
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