Finance & Fury Podcast

Welcome to Finance & Fury. I’m sure that everyone’s heard the saying, “playing it safe” before. And in any game, it’s generally a good idea. If you’re playing a game or participating in anything, you want to make sure you don’t get kicked out of the game too early. And that’s where diversification comes in with investments. Its about covering your butt to make sure you don’t get kicked out of the investment game or at a certain point where it’s actually really essential to have your investments. We’ll be running through today; why even bother, how to get it right (because that doesn’t mean just spreading the risk around, it actually means increasing your returns as well) and then practically, how you can achieve that.   Spread the risk Risk measurement - volatility Correlation Perfect correlated (move in the same direction by the same magnitude) – Australian to International about 80% or 0.80 Think about it as how related things are in their movements together For example, driving down the highway –