By Jens Moestrup Rasmussen, Head of Equity Investment, Sparinvest
Investment houses are required by law to remind investors that the price of shares can go down as well as up. But it could be argued that investors sometimes need reminding that price volatility is as much an opportunity for profit as for loss: because –even though sometimes it appears that the world is about to end – shares can go up as well as down.
After the financial crisis of 2008, the bourses of Europe were hit very hard and the Eurozone region was one of the worst affected in terms of investor confidence. The media was full of headlines about bank insolvency, high unemployment and the possibility of a ‘Grexit’ causing ‘Eurogeddon’ – a breakdown of the single currency.
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