Archive for the ‘2009 depression’ tag
Risk Aversion, Complacency, Mutual Funds, and the Status Quo market.
There is no such thing as risk free. There is “low”, “moderate”and “high” risk. These are just based on our experience of what we have seen to be the case thus far. In this sense, if we continue to maintain the same risk scenarios they become outdated. This is the case RIGHT NOW such as the case of Indy Mac. Also, what seemed to be such a guarantee is now up to question with Fannie Mae and Freddie Mac. Risk aversion is a different ball game now. Risk can never totally be averted, just hypothesized at aversion. We can get close to guessing at risk free but we will never achieve that. There are no guarantees. The sun has risen and set for as long as we know and will know, but it won’t in a few billion years.
