Quote:
Originally Posted by Slava
Well this is the wrong thread for this discussion, and I'm not taking a shot at you in any way here Tron, but I hate that high risk= high return idea. Its such utter BS, and yet its propagated constantly.
I would say in general fotze, that preferreds are right between bonds and common shares on that pyramid though.
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How so? I guess there are always exceptions to the rule, but if it was total BS everyone would be getting great returns on high risk investments, which isn't the case.
I'm curious though because you're right; all my finance courses are hammering away at the high risk, high return correlation, unless you can identify an undervalued stock based on some factor (present or future) that is going to impact its worth. I'd be interested to hear how it would be evaluated differently.