I may post here relevant (in my opinion), and not necessarily recent, quotes. Rather than analyzing specific investments, I will attempt to focus on investors' sentiment regarding broader asset classes and/or specific securities. These will be my thoughts/reactions/questions, and they are not and should not be taken as investment advice.

About me

In particular, I am interested in investors' sentiment and valuation levels. Disclaimer: I work at an Investment Management firm. My comments on this site are not posted in that role, and no opinions of mine should be construed to be recommendations of or to reflect the views of my employer.

Wednesday, June 2, 2010

The value of hesitation

I thought that this one was just too good to pass on:

"With such puny yields on offer in most parts of the capital markets, an investor has two choices: First, accept the fact that we are in a low-yield environment. This is hard for most investors to do. They are beholden to a predetermined return hurdle or are slaves to the persistent memory of recent experience. Second, seek out investments that have a greater propensity for capital gains or higher yields in order to increase total return."

via Annaly Salvos

Are investors currently taking on more risk than they think/believe? Is gold, at least partially, being driven up by the reasons outlined above?