Preserving capital is at least as important to retirees as growing their accounts. Nobody wants to outlast their retirement funds. This is why understanding the volatility of different investments is crucial in making informed decisions for long-term financial security. Over the last 90 years, there have been various investment options available to individuals looking to grow their wealth, but one stands out for its extreme volatility.
REITs have outperformed stocks on 20-to-50-year horizons. Most REITs are less volatile than the S&P 500, with some only half as volatile as the market at large. However, when looking at the overall performance of investments over the past nine decades, there is one particular asset class that has experienced the most turbulent returns.
In a part of the US market for exchange-traded funds that has become known for increasingly risky products, a new offering has debuted that... has captured the attention of investors seeking high-risk, high-reward opportunities. This investment has seen extreme fluctuations in value, making it a challenging choice for those looking for stability in their portfolios.
Whenever share markets go through a 10% fall - known as a share market correction - most investors tend to worry something really big is on the horizon. This fear of uncertainty is amplified when dealing with an investment that has historically shown erratic behavior in terms of returns. Understanding the risk involved in such investments is crucial for managing expectations and avoiding financial pitfalls.
Your investment portfolio allocation should align with your financial goals. Learn how to allocate investments in your portfolio based on your risk tolerance, time horizon, and overall financial objectives. Diversification is key to mitigating risk and protecting your capital from extreme market swings, especially when dealing with highly volatile investments.
Once among the strong Canadian dividend stocks, Cineplex (TSE:CGX) has been hammered over the last 5 years due to the gradual decline in... its financial performance. This serves as a cautionary tale for investors, highlighting the importance of conducting thorough research and due diligence before committing to any investment, especially those with a history of volatility.
