{"id":12824,"date":"2024-02-13T20:43:25","date_gmt":"2024-02-13T19:43:25","guid":{"rendered":"https:\/\/pattersonmills.ch\/?page_id=12824"},"modified":"2024-02-19T12:22:39","modified_gmt":"2024-02-19T11:22:39","slug":"investing-and-risk","status":"publish","type":"page","link":"https:\/\/pattersonmills.ch\/fr\/investing-and-risk\/","title":{"rendered":"Investissements et risques"},"content":{"rendered":"
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t
<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Investing is marked by highs and lows. Understanding your risk tolerance is vital to ensuring your investment strategy is suitable for you.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"Risk\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Investing is marked by highs and lows. Understanding your risk tolerance is vital to ensuring your investment strategy is suitable for you.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

The Investment Rollercoaster<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Market downturns are not uncommon in the investment landscape. They are regular events that halt the upward trajectory of the financial markets. These downturns shouldn\u2019t surprise you; rather, they are to be expected in the cyclical nature of markets.<\/p>

These periods of decline can stem from various factors, including economic shifts, geopolitical events, or sector-specific challenges. However, it\u2019s crucial to grasp that market fluctuations, both upward and downward, are a fundamental aspect of the investment ecosystem.<\/p>

Furthermore, understanding your risk tolerance and the different types of risk is paramount.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t
<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Diversification and Risk<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

All investments carry some element of risk. The value of the fund can fall as well as rise and you may not get back the full amount originally invested. To enable funds to be able to manage risk, the manager will practice some level of diversification. This works on the premise that holding two different shares is better than two of the same shares. This is because all shares react differently to investment conditions and changes.\u00a0<\/p><\/div>

For example, imagine that there are only two companies, one company making t-shirts and one company making woolly jumpers. If the weather forecast is for sunshine, then investors would be wise to buy shares in the t-shirt company as they expect demand for t-shirts to increase and sales to rise, increasing the company share price. However, we know that it is not always sunny and therefore a good manager would buy shares in both companies, so when one share price is static or even falling, the other is able to support and perhaps offset the falls, meaning that the investor doesn\u2019t suffer a loss.<\/p><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

The Fundamental Types of Risk<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Market (Systematic) Risk<\/strong><\/p>

Market risk, also known as systematic risk, is the inherent volatility of financial markets, influencing the value of investments. In essence, this type of risk is, in almost all cases, not possible to avoid.<\/p>

Specific (Unsystematic) Risk<\/strong><\/p>

This involves risks inherent to a particular asset or sector and thus is easier to avoid. For instance, company-specific risks might include management changes, product recalls, or takeovers. Sector-specific risks could stem from regulatory changes or shifts in consumer preferences affecting specific industries.<\/p>

Inflation Risk<\/strong><\/p>

Inflation risk arises from the erosion of purchasing power due to a rise in the general price level of goods and services. Investments failing to outpace inflation may result in diminished real returns.<\/p>

Concentration Risk<\/strong><\/p>

Concentration risk emerges from an overexposure to a particular asset class, sector, or individual investment. This commonly arises from an Employer\u2019s reward scheme whereby an Employee is given shares as a bonus and thus over time the Employee builds up a large concentration of their assets in one Company\u2019s shares.<\/p>

Currency Risk<\/strong><\/p>

Currency risk pertains to foreign exchange investments. The risk of losing money on foreign exchange investments because of movement in the exchange rates is currency risk. For example, if the US dollar depreciates to the Swiss Franc, the investment in US dollars will be of less value in Swiss Franc. The converse is true should the Swiss Franc depreciate instead.<\/p>

Equity Risk<\/strong><\/p>

Equity risk is all about the investment in shares. The market price of shares is volatile and keeps on increasing or decreasing based on various factors. Thus, equity risk is the drop in the market price of the shares at moments in time where adverse market risks have occurred.<\/p><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t
<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Un service aussi unique que nos clients<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Experience over 37 years tells us that everyone really is different. The complexities of uncovering your risk tolerance and risk management strategies can seem intimidating. With the myriad of differing tax rules, investment regulations, and more, it can be extremely challenging to know whether or not your money is working as efficiently as possible for you, and at a level of risk that is acceptable.<\/p>\n

C'est l\u00e0 que nous intervenons.<\/p>\n

With our specialist advice service at Patterson Mills, which is tailored to ensuring you have the best possible chance of financial independence, we are well versed in managing risk for our Clients and shaping a risk management strategy that is suitable for them.<\/p>\n

There is no one-size-fits-all solution. However, being completely independent, we have ensured that our access to the entire market enables us to offer our Clients a service that is just as distinctive as them and one that can meet any level of risk required.<\/p>\n

Pour savoir ce qui vous manque peut-\u00eatre, contactez-nous<\/span><\/a>. Vous n'avez rien \u00e0 perdre et potentiellement beaucoup \u00e0 gagner.<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Pages associ\u00e9es<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Planification Financi\u00e8re<\/a> \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Gestion de la Fortune<\/a>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0Revue ind\u00e9pendant du portefeuille<\/a>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0Pensions and Retirement Planning<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

Investing is marked by highs and lows. Understanding your risk tolerance is vital to ensuring your investment strategy is suitable for you. Investing is marked by highs and lows. Understanding your risk tolerance is vital to ensuring your investment strategy is suitable for you. The Investment Rollercoaster Market downturns are not uncommon in the investment […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"footnotes":""},"class_list":["post-12824","page","type-page","status-publish","hentry"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/pattersonmills.ch\/fr\/wp-json\/wp\/v2\/pages\/12824","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pattersonmills.ch\/fr\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/pattersonmills.ch\/fr\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/pattersonmills.ch\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pattersonmills.ch\/fr\/wp-json\/wp\/v2\/comments?post=12824"}],"version-history":[{"count":19,"href":"https:\/\/pattersonmills.ch\/fr\/wp-json\/wp\/v2\/pages\/12824\/revisions"}],"predecessor-version":[{"id":13091,"href":"https:\/\/pattersonmills.ch\/fr\/wp-json\/wp\/v2\/pages\/12824\/revisions\/13091"}],"wp:attachment":[{"href":"https:\/\/pattersonmills.ch\/fr\/wp-json\/wp\/v2\/media?parent=12824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}