Agriculture missing from broad sweep of ETFs in local market
Zeder and Oceana could be part of the mix with food processors and chicken producers, writes Victoria Aadnesgaard
Among investors it is assumed that there is a strong relationship between taking on more risk and earning higher returns. This is because if investments are risky, investors require a higher return to compensate them for taking on the additional risk. Examples of risky investments include newly formed companies with no track record, or companies that operate in high-risk industries such as agriculture or technology. However, what investors must keep in mind is that even though a higher return is expected, it is not guaranteed — especially in the short term. Companies can liquidate and entire industries can become obsolete, leaving investors vulnerable to losses. Based on this economic theory and presuming that investors are saving for retirement, the younger investors are the more risk they should be willing to take on. This is because even if the economy collapses the average investor has a long enough remaining lifespan to recover from the recession and reap superior returns from ...
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