Risk Is Not A Four Letter Word

With the market now focused on "Brexit" and central bank indecision/extreme stimulus, this is as good a time as any to remind investors risk is omnipresent in today's share market. Geopolitical and macroeconomic concerns are but half the story, at best. Recent turmoil in the local aged care sector and profit warnings from companies including Amcor, UGL and 3P Learning should serve as a timely warning that changes and threats are multiplying on the back of a rapidly changing global context. From mounting debts to low inflation, to changing demographics, new technologies, shrinking government budgets and a persistent low growth environment; it is difficult to pick companies that are immune against all threats and changes. But then, not all companies are similarly affected or equally equipped to cope. Time to pick those risks one feels comfortable with? (VIEW LINK)