Following a sustained run of positive returns across equity markets (arguably 9 years), last week saw a return of the ‘V’ word. Volatility has always and always will be with us, and as long as markets exist there can be no returns over and above the risk-free rate (call this the returns from cash deposits) without risk. This is what markets do; as sure as night follows day.
A drum that we have been banging for the last twelve years at Manse is finally being heard in the larger arena of the financial services industry and the associated press that writes for it.
Recently, The Financial Times “FT Money” section ran an article on probably the most important yet deliberately opaque aspect of investing money in this country, “Hidden Costs That Eat Away at the Value of Your Portfolio” by Norma Cohen.