Why do so many market commentators talk about betting when referring to investing? The investment industry is often infused with the symbolism of a casino – a representation that becomes all too real when investors get wiped out.
As always, investors must be careful not to get carried along by the rhetoric of gambling when they are preparing for their future. Regrettably, recent headlines and stories in the media are not reassuring for those who value a sensible approach during this difficult time.
“H2O Asset Management has sent a letter to clients warning that its funds face ‘surprisingly large’ losses because of bets on bonds and currencies that turned sour during volatile market swings in recent days.” – in the Financial Times
“Yet another Woodford bet hits the rocks: Yorkshire-based 3D printing firm Metalysis collapses into administration” – in This is Money
and as the Wirecard scandal has shown…
“Should fund managers bet big?” – in Morningstar
Is it unsurprising that many investors feel they need to make bets to get ahead?