Mark Hauser’s Perspective on High-and Low-Risk Investments

Mark Hauser identifies the main difference between high- and low-risk investments and gives his opinion to private investors. According to him, you need to align various essential variables to meet your investment objectives. Firstly, you need to evaluate your investments and their inherent risks. Mark further explains that although you can mitigate some degree of risk, you cannot completely ignore them.

Some investments, such as bonds, stocks, and mutual funds, quickly depreciate since various external forces affect them in multiple ways. Also, insured and ultra-conservative investments such as CDs (Certificates of Deposit) have a certain level of risk. Generally, the low yields you gain from CDs’ can easily be outstripped by inflation after some time.

Mark Hauser’s Foundation Investment Risk Concepts

Mark Hauser points out that each experienced investor should understand two essential concepts in their prospective investment program. The following are the applicable principles irrespective of your general investment and suitable market conditions:

The Connection Between Investment Risk and Possible Reward

According to Mark Hauser, each class of investment or asset has its level of risk on the risk scope, and choosing any investment is accompanied by some level of risk. This risk is generally associated with the potential return on the investment. Typically, if you are an investor willing to invest in a much risky investment, you should be rewarded with an increased return.

Historical Averages: No Assurance of Real-World Outcomes

In general unpredictable investment programs, the past historical averages can help you as an investor to determine the amount of risk you are willing to take. Generally, as an investor, you are motivated by your goals but constrained by various economic and market factors.

Mark Hauser explains that there is no way historical averages can assure you that investments will continue being profitable as they have been previously. Also, if you are an investor holding a mixed portfolio for an extended period, it can take time to predict the general return from the portfolio.