NewsBite

Opinion

Arian Neiron

Worried about another sell-off? Time to reframe how you view risk

Conventional wisdom teaches us that greater risk can lead to greater returns, but the concept of risk itself remains poorly understood by most.

In the 1983 cult classic Risky Business, a young Tom Cruise discovers that not all risks come with an equal reward – sometimes, the downside can overwhelm even the most enticing upsides.

It’s a crash course in the asymmetric risk-return trade-off, a lesson that many investors still grapple with today: the allure of gains can often blind us to the far heavier weight of potential losses. As in both Hollywood and investing, the stakes are rarely as simple as they seem.

Loading...
Arian Neiron is managing director and head of Asia-Pacific at VanEck.

Read More

Latest In Equity markets

Fetching latest articles

Most Viewed In Markets

    Original URL: https://www.afr.com/markets/equity-markets/worried-about-another-sell-off-time-to-reframe-how-you-view-risk-20240912-p5ka2a