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Balancing Risks and Rewards

Hosted by: Laura Hawley Special guest: Troy Garcia

September 4, 2019

Host
Laura Hawley – CFP®, Vice President, Financial Advisor at Allen & Company

Co-Host
Troy Garcia – CFP®, Financial Advisor at Allen & Company

In this episode, we’re going to talk about the importance of balancing risks and rewards. Since historically, overvaluation is eventually corrected, investors must proceed with caution when asset prices begin to rise ahead of “fundamental valuation measures.” It is therefore important that all market participants must weigh the amount of risks they’re willing to take in exchange for return or income. To understand these risks to be cautious of, we must first understand the rewards that investors seek in return for taking on these risks.

The opinions voiced in this program are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult an appropriate qualified professional prior to making a decision.

 

In this episode we cover:

  • Looking at the term, “returns” (2:19)
  • A look at investor’s risk tolerance: what specific types of risks are there? (6:50)
  • Risk and return with our portfolio: a jump into the wonderful world of bonds (15:24)
  • Other types of risks: concentration risks (20:48)
  • Assets that don’t have a liquid market (21:30)
  • Currency risks: exchange rates (22:42)
  • The credit rating of the company(22:59)
  • The role of cash and what that plays in one’s portfolio (25:34)
  • Cash Alternatives and the role that they can play (29:34)

Links From the Show:

Connect with:

Laura Hawley – CFP ®, Vice President, Financial Advisor at Allen & Company
Allen & Company – Laura Hawley
LinkedIn – Laura Hawley

Troy Garcia – CFP ®, Financial Advisor at Allen & Company
Allen & Company – Troy Garcia
LinkedIn – Troy Garcia

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