Market Risk Quotes

#1. Do not trust financial market risk models. Despite the predilection of some analysts to model the financial markets using sophisticated mathematics, the markets are governed by behavioral science, not physical science.

Seth Klarman

#2. Stock market risk is ok, but not for Social Security.

Barack Obama

#3. Index funds eliminate the risks of individual stocks, market sectors, and manager selection. Only stock market risk remains.

John C. Bogle

#4. Because our brains make a mountain out of a molehill of uncertainty, we tend to prefer competitive risk because it feels more secure. But the empirical evidence says that market risk is less risky than competitive risk.

Whitney Johnson

#5. Market risk is like taking a plunge into a cool pool ... a lot of people are finding out right now what their risk tolerance is.

William J. Bernstein

#6. It's bad enough that you have to take market risk. Only a fool takes on the additional risk of doing yet more damage by failing to diversify properly with his or her nest egg. Avoid the problem-buy a well-run index fund and own the whole market.

William J. Bernstein

#7. I think if you go beyond a year - if this continues into the system in the out years, I think there is a risk and that - that we could have a negative reaction in the bond market and that will offset the good that was attempted to be done.

Franklin Raines

#8. One of their most famous coups was underwriting a $10 million loan for a growing mail-order house called Sears, Roebuck, headed by Goldman's distant relative. It was the first time a mail-order security had ever been on the market-a calculated risk, but one that paid off.

Kenneth L. Fisher

#9. You can invest with less risk and make more money in the stock market. All you have to do is not be an average investor. Intelligence is the ability to make finer distinctions.

Robert Kiyosaki

#10. When you have risk aversion in Japan, the normal day-to-day outflows that happen in a normal market environment slow down.

Jens Nordvig

#11. Real investment risk is measured not by the percent that a stock may decline in price in relation to the general market in a given period, but by the danger of a loss of quality and earnings power through economic changes or deterioration in management.

Benjamin Graham

#12. He will risk half his fortune in the stock market with less reflection that he devotes to the selection of a medium-priced automobile.

Jesse Lauriston Livermore

#13. Once the brokerage house, rather than the bank, became the locus for American savings, that money would find its way into the stock market, because the broker was someone with a much higher tolerance for risk than the banker.

Ron Chernow

#14. What we have at present is a system of loss socialism. Whatever goes wrong is shouldered by the general public and anything that works is privatised. Worshippers of market freedom have suspended the most important economic principle: Risk and liability go hand in hand.

Sigmar Gabriel

#15. If we didn't have greed, market economies wouldn't be as innovative as they are. But in my view, greed has to be contained by the fear of losses, so there has to be a system where, if you take too much risk, you go into bankruptcy. You don't systematically bail out people who take excessive risks.

Nouriel Roubini

#16. It is true [the risk for travel is greater] for we now operate in a global market. Business travelers are conducting business all over the world as if they are conducting business in their own backyards.

Mark Hall

#17. The credit crunch was based on a climate (the post-Cold War victory party of free-market capitalism), a problem (the sub-prime mortgages), a mistake (the mathematical models of risk) and a failure, that of the regulators.

John Lanchester

#18. The technical explanation is that the market-sensitive risk models used by thousands of market participants work on the assumption that each user is the only person using them.

Avinash Persaud

#19. You will never be a greater risk-taker in the markets if you approach life with a completely different attitude.

Henrique M. Simoes

#20. RE: GSEs like Freddie Mac & Fannie Mae: "creditors will continue to underprice the risk-taking of these financial institutions, overfund them, and fail to provide effective market discipline Facing prices that are too low, systemically important firms will take on too much risk."

Gary H. Stern

#21. If you roll dice, you know that the odds are one in six that the dice will come up on a particular side. So you can calculate the risk. But, in the stock market, such computations are bull - you don't even know how many sides the dice have!

Nassim Nicholas Taleb

#22. Money, while clearly helpful in solving myriad problems, can often conceal a business's real flaws. It can also risk rigidifying a company's business model at the very moment it should be in 'customer discovery' mode or iterating around market opportunities.

Maelle Gavet

#23. The more evident it is that a certain company is going to become the market leader in a big market space, then the higher the valuation goes because the risk has been dramatically reduced.

Audrey MacLean

#24. Smart Risk will shatter the emotional myths to investing and help Canadians see the opportunities in today's volatile market.

Maili Wong

#25. Money you know you need or want to spend in the next few years is savings. Money you keep handy for an emergency belongs in savings. Money you hope to use soon for a down payment on a house belongs in savings. And all savings belong in a low-risk bank savings account or money market account.

Suze Orman

#26. Always understand the risk/reward of the trade as it now stands, not as it existed when you put the position on. Some people say, "I was only playing with the market's money." That's the most ridiculous thing I ever heard.

Bill Lipschutz

#27. In plucking the fruit of memory one runs the risk of spoiling its bloom, especially if it has got to be carried into the market.

Joseph Conrad

#28. RBGH poses an even greater risk to human health than ever considered. The FDA and Monsanto have a lot to answer for. Given the cancer risks, and other health concerns, why is rBGH milk still on the market?

Samuel Epstein

#29. You don't want too much fear in a market, because people will be blinded to some very good buying opportunities. You don't want too much complacency because people will be blinded to some risk.

Ron Chernow

#30. For market discipline to constrain risk effectively, financial institutions must be allowed to fail. Under optimal financial regulatory and financial system infrastructures, such a failure would not threaten the overall system.

Henry Paulson

#31. Business schools are failing to teach the students about the risks of market failures. We need to include some material on market failures in the core of curriculum.

Pankaj Ghemawat

#32. Climate change is a result of the greatest market failure the world has seen ... We risk damages on a scale larger than the two world wars of the last century.

Nicholas Stern

#33. Since the 1970s, we have witnessed the forces of market fundamentalism strip education of its public values, critical content, and civic responsibilities as part of its broader goal of creating new subjects wedded to consumerism, risk-free relationships, and the destruction of the social state.

Henry Giroux

#34. People are putting their money into treasuries because they worry that the risk of putting their money into the bond market, the stock market or even the money markets is very high.

Michael Hudson

#35. I just like to keep my money in the bank; I'm not a big risk-taker. I don't know anything about the stock market ... I stay away from things I don't know anything about.

Wayne Gretzky

#36. Outperforming the market with low volatility on a consistent basis is an impossibility. I outperformed the market for 30-odd years, but not with low volatility.

George Soros

#37. The United Kingdom has traditionally been a very small market, and even though you had such a creative group of designers, they represented a risk to department stores.

Natalie Massenet

#38. If you spend more than 13 minutes analyzing economic and market forecasts, you've wasted 10 minutes

Peter Lynch

#39. The risk from terrorism remains acute and the private market cannot continue to operate without a government backstop.

Michael Oxley