Investing: The Evidence – Part 4

Part 4 of this short documentary series, 'Investing: The Evidence', delves into the relationship between risk and return and how investors can reduce risk through strategic asset allocation.

The reason why the market provides a return to investors is that it is compensation for the risk that investors take. While investors stand a moderate chance of losing money in the short term, holding investments over the very long term can remove a lot of the uncertainty over the return of your investment, which can nearly guarantee a long-run positive return.