Itsallaguess wrote:IanTHughes wrote:An offered possible reward of say 8.00%, when compared with another offered possible reward of say 6.00%, simply means that the investing public is demanding a higher possible reward for the former.
<whisper>
Because they're higher risk...
</whisper>
Do you know, I believe that you would still <whisper>such nonsense</whisper>, even if presented with conclusive evidence that the dividend from the 6.00% was about to be cut, and the dividend from the 8.00% was about to be raised!
.The level of Yield of a given share is NOT A MEASURE OF RISK.
Rather it is A MEASURE OF REWARD being offered for taking that risk.
I feel sorry for you, or indeed anyone whose money is invested by someone not able to grasp that so simple concept!
Fortunately for you at least, knowing your preference for Managed Funds, Fund Managers of my acquaintance agree with my assessment!
ian
If the term "you" is used in an argument within the context of discussing shares then things are likely on the brink of being too personal (c.f. debt almost always preceding a bankruptcy). Please try to couch your arguments differently. Thanks - Chris