Why Risk Managers Should Be Spymasters | Jesse Eisinger | Pro Publica<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Risk specialist John Breit cites this immutable law of capital markets: You can’t make money without taking risk. Breit reminds us that if a trade seems both profitable and low-risk, it’s because you don’t understand the risks. From Why Risk Managers Should Be Spymasters | Jesse Eisinger | Pro Publica<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32],"tags":[2970,2972],"class_list":["post-7411","post","type-post","status-publish","format-standard","hentry","category-trading","tag-risk-management","tag-risk-reward-ratio"],"yoast_head":"\n
Immutable law of capital markets: Investors make money by taking risk - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Immutable law of capital markets: Investors make money by taking risk - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Risk specialist John Breit cites this immutable law of capital markets: You can’t make money without taking risk. Breit reminds us that if a trade seems both profitable and low-risk, it’s because you don’t understand the risks. 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Residential mortgages are allocated a low risk weighting -- 15% to 17% because of historic performance -- compared to 50% for US banks. The big four banks piled into this area because of the perceived low\u2026","rel":"","context":"In "Australia & NZ"","block_context":{"text":"Australia & NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":20042,"url":"https:\/\/thepatientinvestor.com\/index.php\/2020\/03\/19\/risk-parity-funds-are-selling-gold\/","url_meta":{"origin":7411,"position":1},"title":"Risk parity funds are selling Gold","author":"Colin Twiggs","date":"March 19, 2020","format":false,"excerpt":"The risk parity strategy employed by large macro hedge funds is failing, forcing them to sell Gold and Treasuries when these are traditional safe havens in times of crisis. Risk parity uses risk\u00a0\u2014 usually defined as volatility \u2014 to allocate capital. The fund manager sets a targeted level of risk\u2026","rel":"","context":"In "Gold & Precious Metals"","block_context":{"text":"Gold & Precious Metals","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/gold-precious-metals\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10378,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/07\/21\/jon-cunliffe-the-role-of-the-leverage-ratio\/","url_meta":{"origin":7411,"position":2},"title":"Jon Cunliffe: The role of the leverage ratio….","author":"ColinTwiggs","date":"July 21, 2014","format":false,"excerpt":"Sir Jon Cunliffe, Deputy Governor for Financial Stability of the Bank of England, argues that the leverage ratio -- which ignores risk weighting when calculating the ratio of bank assets to tier 1 capital -- is a vital safeguard against banks' inability to accurately model risk: ..... while the risk-weighted\u2026","rel":"","context":"In "Banks & Interest Rates"","block_context":{"text":"Banks & Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8739,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/11\/16\/whats-new-twiggs-momentum-research-results\/","url_meta":{"origin":7411,"position":3},"title":"What’s New: Twiggs Momentum research results","author":"ColinTwiggs","date":"November 16, 2013","format":false,"excerpt":"Further to my recent part-acquisition of Porter Capital Management, I would like to share with you our progress in developing new investment strategies. 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With an average ratio of 11.5% (September 2011),\u2026","rel":"","context":"In "Australia & NZ"","block_context":{"text":"Australia & NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":44777,"url":"https:\/\/thepatientinvestor.com\/index.php\/2023\/10\/20\/a-moderate-risk-portfolio\/","url_meta":{"origin":7411,"position":5},"title":"A moderate risk portfolio","author":"Colin Twiggs","date":"October 20, 2023","format":false,"excerpt":"We have created a separate portfolio with a greater focus on income -- to suit investors with a moderate risk profile (apart from our current growth strategies). There are two phases: Short-term (ST) targets consider the current environment with some asset classes avoided due to high prices; and Long-term (LT)\u2026","rel":"","context":"In "Australia & NZ"","block_context":{"text":"Australia & NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"Moderate - LT Strategy","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-10-20-moderate-lt.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-10-20-moderate-lt.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-10-20-moderate-lt.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/7411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=7411"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/7411\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=7411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=7411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=7411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}