Salient to Investors:
Pat Dorsey at Sanibel Captiva Investment Advisers said Greece leaving the euro would not be a big deal to a portfolio of largely multinational large caps.
Dorsey said the uncertainty and worry is a big investment positive – its dangerous to invest is when everybody is certain and confident about the future: a la Yahoo! in 1999, a la US home values always going up in 2007. Investing is safer when people are unsure. People like easy answers so are attracted by macro predictions, which have very poor track records of coming true.
Dorsey says always ask how much a hedge is costing you. One of the easiest ways to hedge is to hold more cash. However, the biggest risk for the investor who pulls back out of fear or worry is that they don’t get back in.
Read the full article at http://www.morningstar.co.uk/uk/news/96451/Uncertainty-is-Good-for-Smart-Investors.aspx