Updates, Tips, & Finance News

This week I want to discuss risk and reward when thinking about investing.

A lot of the best money managers care just as much about risk as they do reward when making an investment decision.

Currently, we believe that a lot of individuals aren't focused on the risks that remain in the markets.

The stock market this week reached another new high in the face of a lot of short-term risks.

For example, trade tensions haven't really calmed down much.

There's definitely a decent amount of political and economic risk abroad and a lot of big money managers are starting to reassess risk.

For example, in the corporate loan market a lot of businesses have been able to borrow on the cheap at whatever terms they seemingly wanted for a while.

Now money managers have started to push back.

In fact, there hasn't been this much pushback in the loan market since 2015 when oil sold off quite sharply.

At Round, we remain defensive at the moment until we see some of these short-term risks calm before we re-enter the bull market.

Hope you have a great week ahead!


Disclosure: The stock market setting a new high was in reference to the S&P 500 during the week of 8/20/18 - 8/24/18. Corporate loan statistics reference Bloomberg article - Leveraged Loan Buyers Are Losing Patience With Riskier Deals. Round Investments LLC, dba Round, is an SEC registered investment advisor. Securities offered through Apex Clearing Corporation, Member FINRA, SIPC. The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered legal, investment or tax advice as it does not take into account the specific objectives, financial situation or particular needs of any specific person. Diversification does not ensure a profit or protect against a loss in a declining market. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Forecasts or projections of investment outcomes in investment plans are estimates only, based upon numerous assumptions about future capital markets returns and economic factors. As estimates, they are imprecise and hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Investing entails risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time. To view Round's Brochure, Terms of Use, Privacy Policy, and Disclosures go to www.investround.com