Tag: risk

The Risk and Return Relationship – Part Two

4 September 2017

A Firstline Securities Blog by: Mike

Introduction

In the first part of this series of blog entries we looked at the definitions of risk and return and how they interconnect in the investment arena. In this blog entry, we expand on this by extending our analysis to include an introduction to basic portfolio theory. There is some maths involved but we have tried to keep it as simple as possible. Read more…

The Risk and Return Relationship – Part One

1 September 2017

A Firstline Securities Limited Blog by: Mike

Introduction

In the first of a two-part series we look at the concepts of risk and return and the relationship between them.

Read more…

THE RISK VERSUS REWARD HIERARCHY

21 March 2017

A Firstline Securities Limited Blog by: Jody Hernandez

Generally speaking, you may need to consider accepting more risk if you want to pursue higher returns. If you decide to seek those potentially higher returns, you face the possibility of greater losses, including some or even all of your investment.

The longer you invest, the more time that riskier investments, such as equities, have to recover from any falls. Bear in mind, however, that long-term investing does not guarantee that you will meet your investment objectives.

Based on this historic performance, investment professionals tend to rate the different types of investments according to a risk/return hierarchy. This generally means that if you want greater rewards, you may need to accept greater risk. Read more…

Money Laundering: Does It Really Affect Me?

14 March 2016

160314 Money Laundering AH - Image 1

Is money laundering for the fat cats and the drug lords, and has nothing to do with the Regular Joe and Joanna?

First, a reminder on what money laundering is: a series of processes used by criminal elements to convert or clean dirty money into clean, untraceable funds, acceptable by all. Money laundering often involves a complex series of transactions that are usually difficult to separate.

Does Money Laundering really affect us (the regular people)? Yes!

This is how it affects you, yes you sitting down here, reading this.

It destabilizes the economy and financial systems

With this extra, easy dirty money being pumped into the economy on a daily basis, you would notice that there is too much money floating around which results in price inflation of certain high value items such as house and land. Let’s say the median salary in Trinidad and Tobago is below TTD$15,000 monthly. This may qualify for a mortgage of about TT$1.1 million, yet it will be a challenge to purchase a property around this price range.

When you look at the real estate market you notice extreme prices being called for, so much so that the prices have the experts shocked at what they are seeing.

It is a known fact that money launderers are interested in purchasing luxuries or high valued properties; this will have the domino effect as a “gold rush” would start, and everyone will want part of the action, properties all over the country will start going up will be above the reach of the average person.

The result is quite clear, just look out your window you would notice that many families are suffering as they are making ends meet just to pay for rent or make high mortgage repayments due to the inflated prices.

Money laundering is a bad seed and once it’s planted and gets its roots into an economy, its fruits are a continued poison that destroy happiness, family values, love and respect. Read more…