Risk is uncertainty. For example, there is a risk it will rain tomorrow. People who invest don’t like uncertainty unless they will be fairly compensated for it, either now or in the future. All pricing in the stock and bond markets is inherently based on providing appropriate monetary compensation for the level of risk the…
Author: canadiandiyinvestor
Can the stock market go to zero?
This is a concern I saw expressed recently online by a new investor. In theory it could happen, but in practice it cannot. In practice, the stock market has steadily increased by well over 6% a year when measured averaged over decades. The stock market is not a zero-sum game, like gambling. The stock increases…
Risky vs risk-free investments
I started investing decades ago using Canadian GICs (like US CDs). What was my motivation? I wanted to get a better return than leaving the money in a savings account, and I wanted it to grow at least as fast as the inflation rate. I also wanted to avoid risk. Both bank savings accounts and…
Why Do-It-Yourself Investing?
I am a engineer/scientist by training, and also have an MBA in Finance. Although both fields can be complicated in some cases, I am a firm believer in making sure they aren’t viewed as more complicated than they really are. Hence this blog’s tagline: Personal investing simplified My personal journey has lead me to believe…