As a follow up to a couple of recent posts about increased appetite for risk is this chart from Jyske Bank.The currencies here cover a lot of emerging market real estate. A lot of money flowed into higher risk currencies last month.
Interesting stuff.
2 comments:
I believe that many investors who manage their own portfolio fall into a trap which your title describes perfectly. There is a similarity between playing Keno and throwing hard-earned dollars at extraordinarily risky investments. One, there is a big rush of accomplishment when you win and two, you probably won't win again for a long time - long after your initial funds are gone.
I like to peruse the eclectic sides of making money as well as the next investor, but, like gambling, I must control the urge to spend.
By the way, in Lima Peru at the Marriott hotel/casino the blackjack dealer does not have take a hit on 16. There is a lesson to be found in that.
An appetite for risk or a lack of appreciation for the level of risk involved? Comes to the same thing I suppose but it does suggest an increasing search for return along with the increasing allocation to non-US markets. That's worth pursuing up to a point but given the even larger inflows of money into US markets from abroad, that point could easily be exceeded; e.g., large-cap US firms w/ growing dividends (and not infrequently with strong non-US sales) remain viable long-term investments in this environment.
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