Skip to Content
Rekenthaler Report

3 Aspects of Risk, 2019 Edition

Destruction, volatility, and uncertainty.

Here, I revisit a column originally published in September 2013.

Destruction
Yesterday's column highlighted one aspect of risk: the possibility that an asset becomes destroyed (either fully, such as by a government confiscating assets, or partially, as in a large inflation-adjusted loss sustained over multiple decades). The source was Bill Bernstein, who listed the "four horsemen" of destruction: hyperinflation, severe deflation, government confiscation, and war/devastation. To Bernstein, an investment adult is one who worries less about monthly fluctuations and more about avoiding catastrophes.

To view this article, become a Morningstar Basic member.

Register for Free