Risk & Reward
Thirteen months after the spectacular failure of Lehman Brothers and the subsequent financial carnage, investors know more about investment risks than they ever cared to know. The trade offs between risks and rewards (the opportunities afforded to those with the prudence, patience, and perseverance) are never crystal clear but seldom totally obscure. Having just navigated through the most turbulent investment markets in modern times, all of us have reassessed our risk tolerances and many of us have stress tested our portfolios. We should all be better prepared to meet the future vagaries of the financial markets.