The Risk In Seeking "Safety"? Safety Doesn't Exist

Upon perusing financial news this week, one Bloomberg piece caught our eye. It highlighted a recent survey of 2,000 investors and concluded some 40% of respondents shifted their portfolios ahead of November 3’s midterm elections—especially younger investors.[i] The main move? They sought to reduce “risk”—seeking “safety” from feared election outcomes. Set aside, for a moment, midterms’ strongly bullish history. We see a different investing philosophy problem: Safety doesn’t exist in investing. All assets have risk. Every decision is about tradeoffs. Read Full Article »