Last time, I told you how Riskalyze is specifically designed to match how much you are prepared to lose money (risk) in the short term against your long-term goals (returns). I’ll go into that a bit more later, but first let me tell how badly the investment industry has let down ordinary investors.
I wish I knew at the age of 25 what I know now. Back then, with my first real money to invest, I was clueless about how much risk I was prepared to take and what returns I was looking for. So I filled in the old-fashioned question-and-answer thing every investment adviser gives you and I was advised that I fell into the “moderately aggressive” category.
The markets since May and during the first part of June have been marked by grim deterioration driven almost entirely by local political factors, particularly the proposed changes to the Mining Charter. Therefore, during June, we cut the net exposure of all our funds down to 60%. During July, for our Robert Falcon Scott fund, we moved away from leveraged products (CFDs) and into equities. Along with less risk, the reduced gearing also translated into lower costs.
A review of the Emperor Asset Management Aconcagua growth investment bundle, touching on topics such as volatility, investment risk and investment goals that can be linked to a growth portfolio.
Listening time: 12 minutes