Investors Must Recall Risk, Investing's Four-Letter Word; Jan 23, 1998

By KAREN HUBE Staff Reporter of THE WALL STREET JOURNAL

What four letter word should pop into mind when the stock market takes a harrowing nose dive? No, not those. R-I-S-K. Risk is the potential for realizing low returns or even losing money, possibly preventing you from meeting important objectives, like sending your kids to the college of their choice or having the retirement lifestyle you crave. But many financial advisers and other experts say that these days investors aren't taking the idea of risk as seriously as they should, and they are overexposing themselves to stocks. "The market has been so good for years that investors no longer believe there's risk in investing," says Gary Schatsky, a financial adviser in New York. "And when the market drops hundreds of points and rebounds immediately, that belief is confirmed."

To read more:

http://pages.stern.nyu.edu/%7Eadamodar/New_Home_Page/invmgmt/ch2/risk.htm

All the best,
Dah Hui Lau (David)
dahhuilaudavid@gmail.com