Curse of Risk.

Okay, so since our human brain hasn't changed much from the hundreds, even thousands of years, we still are attempting to solve problems the pretty much the same way that our cave age family members did. The same basic problem we are still trying to solve is risk.

So, since things have been a bit of mess, what you do predict is the best industry to invest in to avoid risk?

8 Comments
 

What type of risk? Macro? Regulatory? Cyclical?

Investing in one industry in and of itself is a risk. Many times, mitigating one type of risk exposes you to another type. What you have to do is prioritize which ones you want to manage based on your views and investment goals.

 

Okay, so your saying to invest in many different industry like example car, gold, info tech, etc.. So then what would be industries be the safest of least risky to invest in?

 

Gold & Oil. Two things that everybody will want, need and is addicted to. Gold is safer than house. And Oil is something that everybody always needs even when they have a full tank of gas.

 
bearingITT we learn about diversification and pair trades.

+1

OP risk isn't necessarily your enemy, just recognize any endeavor is inherently risky, don't put all your eggs in one basket or industry. Also the biggest threats are the ones you don't see coming, the real risk is disruptive innovation. Look at the railroads getting killed, in 1910 who would have predicted that? Typewriters were an office mainstay for decades, the PC did them in.

 

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"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 
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"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

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