The Contrarian Investor: The four horsemen of the financial apocalypse

CONTRARIAN INVESTOR

The Contrarian Investor, David Stevenson, explores the concept of 'deep risk' - and offers up a new take on asset allocation.

For me, the very best distinction between different types of risk comes in a recent ebook called Deep Risk by the US investment writer William Bernstein. Bernstein is a brilliant observer of man’s economic affairs, and can always be relied upon to take the long-term view. Deep Risk takes this analysis one step further by focusing on two distinct forms of risk. Shallow risk is typically experienced by stock market investors in volatile years when shares can go and down by as much as 50% per annum. This ebb and flow in the stock market is as natural as night following day, and Bernst...