Investment advice

Danamic

mr_fishbulb wrote: »

The less capital risk you have, the more inflation risk there is.

fg22 wrote: »

Perhaps off topic but...

This isn't really true; less exposure to capital risk does not mean more exposure to inflation risk. For example NS&I offer risk free index linked savings cerificates with both negligible capital risk and negligible inflation risk. In comparison an investment in fixed interest corporate bonds places your capital at risk if they default and is also subject to inflation risk as your real return will be lower if inflation is higher than expected.
There is a theoretical link between equity returns and inflation but in the short term I'm not sure if there is much correlation.

Investment risks are all about finding a balance that is optimal.

The main investment risks that people are concerned about are:
Volatility
Inflation
Credit

Those that you shouldnt forget about:
Model [LTCM]
Liquidity [Antiques]
Fraud [Madoff]
Rebalancing [Not reviewing regularily]
Unsystemic [lack of diversification]
Appraisal [how to price]

So yes its not as simple as what is above... but the concept is on the right lines.

sheslookinhot

happyrichard wrote: »

Lokolo wrote: »

No problem. Next time, maybe not be so rude?

I have edited my post to say about GEBs, but they are a poor investment choice and most would stick to savings as they are that bad.

If you wanted specific information about a certain investment, which you clearly already had in mind, why did you not ask about this instead of a general question about investments?
QUOTE]

Me rude- your one liner of "Nope. That would mean its not really an investment" was charming...:rolleyes:

I did not want specific advice on a specific investment as I only found this one when I thought I should back my point up with an example of how you can have an investment without risk.

I note that you are yet to graduate- some way to go obviously.

Thanks for your words of wisdom. I will search in another area for advice and I will try and be more specific and clearer to ensure that people are able to help me.

Apologies if this comes over as rude, but I started my post purely wanting advice- not to be told I knew nothing.

Maybe in future you could start your own thread, instead of hijacking someone elses.
and certainly your attitude towards someone who takes time to help other people is unacceptable. Maybe just as well you have only been READING posts for 2 years.