Three strategies to tackle fear as an investor

As an investor, you should be able to take the heat — while getting paid for doing so, says Swiss wealth manager Julius BaerThere are three strategies for tackling fear: rationalise it, ignore it or embrace it. Picture: SUPPLIED/JULIUS BAER

About the author: Christian Gattiker is a CFA, CAIA and head of research at Julius Baer. Picture: SUPPLIED/JULIUS BAER The action of the crowd affects the price of risk well before the crisis fully hits. In such a case, the price of an asset drops long before the danger materialises. The main gauges for measuring the fear factor on stock markets are volatility measures, which are known as “fever curves” in financial markets. They may be imperfect, since they only measure price fluctuations, that is how fast prices move.

The same can be applied to the contrary case, according to Warren Buffett’s motto: “Be fearful when others are greedy, and greedy when others are fearful.”The other way to rationalise fear in markets is to try to find out how much you get paid to worry. Classic tools for determining this are the equity risk premium in equity markets and credit spreads in bond markets.

There are a few outliers, of course, but by and large, investors made 6%-7% in real terms every year by holding US stocks. So why worry, then, if it will all turn out fine in the end?

juliusbaer I was scammed through Bitcoin couple of months ago, I started hating Bitcoin until I was introduced to Allison_Grillo, and I gave Bitcoin trading another try, I successfully withdrew $35,000 after two weeks of trading, am so grateful Allison_Grillo thank you.

juliusbaer As a mother of two kids I have battled alot with my financial state to the point of begging from friends just to survive,until I started Bitcoin trading with the help of Allison_Grillo I made a successful withdrawal of R 200,000 with the help of Allison_Grillo.

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Golden fried prawns: Crispy seafood bites to kick off a three-course mealGolden fried prawns: Crispy seafood bites to kick off a three-course meal Crispy and flavour-packed, these golden fried prawns are the perfect starter to serve to your guests. Try out this recipe!
Source: TheSAnews - 🏆 25. / 59 Read more »

Pereira grabs three-shot lead, Woods withdraws from PGA Championship – The CitizenSouth African players Shaun Norris, Louis Oosthuizen and Charl Schwartzel were in a tie for 60th place at seven-over par. If you need a gardner, handyman or cleaner, please consider me 🙏. I'm even willing to be a servant boy doing any odd jobs 🙏. Just as long as I feed my family. My children slept hungry for the second night in a row💔
Source: TheCitizen_News - 🏆 6. / 75 Read more »

Twelve killed, several others injured in three seperate accidents – The CitizenThe accidents haoppened in Polokwane and the Eastern Cape I was scammed through Bitcoin couple of months ago, I started hating Bitcoin until I was introduced to Allison_Grillo, and I gave Bitcoin trading another try, I successfully withdrew $35,000 after two weeks of trading, am so grateful Allison_Grillo thank you.
Source: TheCitizen_News - 🏆 6. / 75 Read more »

Three Western Cape politicians’ names appear on supposed hit listThree Western Cape politicians’ names appear on supposed hit list It has recently been revealed that three ANC councillors in the Western Cape have had their names written on a supposed ‘hit list’.
Source: TheSAnews - 🏆 25. / 59 Read more »

Parents hurt in pocket after SA Rugby prompts self-funding for three youth weeks | SportParents whose kids dream of playing in the Learners with Special Education Needs, Under-18 Academy or Under-13 Craven Week have to dig into their own pockets to ensure their youngsters fulfill their provincial rugby ambitions. | kaymorizm Sport24news kaymorizm Sport24news I don’t care what you think of me I’m happy that’s all that matters 3.:)
Source: News24 - 🏆 4. / 80 Read more »

Three unknown bodies full of bullets found in a veld in MangaungThree unknown bodies full of bullets found in a veld in Mangaung Police said the three unknown victims were shot several times on their heads, necks, and upper bodies when found at the scene.
Source: TheSAnews - 🏆 25. / 59 Read more »