On March 1, the Dow Jones Industrial Average broke through the 21,000 barrier to close at a record high.
When the markets are relatively stable with no crisis on the horizon, whatever is the financial media to do? It comes up with headlines like: “It’s Getting Scarily Quiet in the Stock Market”1 and “The Stock Market Is Quiet.
Whatever your political views may be, it’s fair to say that speculation about the upcoming presidential election has been rampant in the press and among pundits from both sides of the aisle. So it’s really no surprise that the financial media are debating how the presumptive nominees, the race itself and its outcome will affect the markets.
For as long as there has been stock markets, investors have intuitively known that expectations of returns come with commensurate expectations of risk; the higher return one expects the greater the risk one assumes in order to achieve it.