OMI warns UAE bulls on ‘bumpy ride’
By International Adviser, 2 Nov 17
Old Mutual International is warning of the risks in the attitude shift after researchers discovered UAE investors are more focused on achieving investment gains than on protecting against losses.
On average investors in the region are hoping to achieve 7.7% return in 2017 according to the annual study with Quilter Cheviot.
However, Paul Evans, head of region, Middle East & Africa, Old Mutual International, warned gains had fostered a ‘false sense of security’.
“As optimism builds and investors seek out higher returns there is a danger they will inadvertently take on too much risk. Increased optimism should not come at the expense of managing investment risk,” he said.
“It is believed that people will suffer pain from investment loss more than the equivalent pleasure from investment gains. Therefore, it is important investors fully consider the risk they are taking on, and manage that risk accordingly, or they could be in for a bumpy ride.”
The report has also found shifts in concern over oil prices and risk:
Tags: Old Mutual | Risk | UAE
