Episode 131: Investment Risk & Economic Seasons
'Successful investing is about managing risk, not avoiding it'
The world is going through a huge phase of adjustment right now. It might feel like a dangerous time and you might feel unsafe being exposed to any perceived or real 'risk'.
But there is a well-established principle that investors can generally expect for there to be four different economic seasons in the economy:
Rising Prices (Inflation)- Spring
Low inflation (or Deflation) - Summer
High economic growth - Autumn
Low economic growth - Winter"
This week we chat about the various Investment Asset classes and how you can assess your exposure to this via your Super and/or Investments.
We look and how each asset class is likely to perform in each of the economic seasons.