What is a “conservative” investor?

Yesterday, Jonathan Chevreau, one of Canada’s finest financial columnists, wrote about how women are generally more “conservative” prefering safe investments, “defined as” GICs, bonds, mutual funds.  Obviously, the term “conservative” has a somewhat different meaning in conventional investment lingo than when I refer to myself as a conservative investor.  For to me, a conservative investor has to mean something different than putting your money at interest in an inflationary environment.  That should be called “risk adverse” not conservative.  But alas, risk adverse investors expose themselves to the worst asset class of all, fiat currency at low interest rates, which is not likely but certain to destroy wealth.  A conservative investor looks at a the bad monetary policy and devises strategies to beat it.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s