--- title: "Meaning & Key Takeaway of: Any onset of increased investor caution…" description: "\"Any onset of increased investor caution elevates risk premiums and, as a consequence, lowers asset values and promotes the liquidation of the debt that..." image: "https://sms4smile.com/quotes/i/b9b/alan-greenspan-1834_aftermath_any-onset-of-increased-investor-caution_926516.jpg" --- # Any onset of increased investor caution elevates risk… ![“Any onset of increased investor caution elevates risk premiums and, as a consequence, lowers asset values and promotes the liquidation of the debt that supported higher asset prices, ... This is the reason that history has not dealt kindly with the aftermath of protracted periods of low risk…” quote by Alan Greenspan](https://sms4smile.com/quotes/i/b9b/alan-greenspan-1834_aftermath_any-onset-of-increased-investor-caution_926516.jpg) [Download](https://sms4smile.com/quotes/i/b9b/alan-greenspan-1834_aftermath_any-onset-of-increased-investor-caution_926516.jpg) [Open image](https://sms4smile.com/quotes/i/b9b/alan-greenspan-1834_aftermath_any-onset-of-increased-investor-caution_926516.jpg) > “Any onset of increased investor caution elevates risk premiums and, as a consequence, lowers asset values and promotes the liquidation of the debt that supported higher asset prices, ... This is the reason that history has not dealt kindly with the aftermath of protracted periods of low risk premiums.” [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. When investors become more cautious, they demand higher returns, which pushes down asset prices and forces debt‑backed assets to be sold, often leading to prolonged downturns. **In simple terms:** Caution raises returns, lowering prices and causing debt sales. Key Takeaway Monitor risk sentiment and adjust exposure. Themes finance risk markets behavior history Mood cautious analytical reflective Type economic financial advisory When to use this quote - portfolio management - investment strategy - economic forecasting - policy analysis Key Concepts risk premium liquidity asset valuation debt cycles Questions to Reflect On - How do you balance caution with opportunity? - What indicators signal a shift in risk sentiment? A Different Perspective Higher risk premiums can also signal healthy market corrections; not always negative. ★ ★ ★ ★ ★ No ratings yet [Aftermath](https://sms4smile.com/quotes/about/aftermath/) [Assets](https://sms4smile.com/quotes/about/assets/) [Caution](https://sms4smile.com/quotes/about/caution/) [Caution Elevates](https://sms4smile.com/quotes/about/caution-elevates-1475034/) [Consequence](https://sms4smile.com/quotes/about/consequence/) [Customer](https://sms4smile.com/quotes/about/customer/) [Debt](https://sms4smile.com/quotes/about/debt/) [Elevates Risk](https://sms4smile.com/quotes/about/elevates-risk-1475033/) [Higher](https://sms4smile.com/quotes/about/higher/) [Investing](https://sms4smile.com/quotes/about/investing/) [Investor Caution](https://sms4smile.com/quotes/about/investor-caution-1475032/) [Investors](https://sms4smile.com/quotes/about/investors/) [Lows](https://sms4smile.com/quotes/about/lows/) [Periods](https://sms4smile.com/quotes/about/periods/) [Premiums Consequence](https://sms4smile.com/quotes/about/premiums-consequence-1475031/) [Reason](https://sms4smile.com/quotes/about/reason/) [Risk](https://sms4smile.com/quotes/about/risk/) [Risk Premiums](https://sms4smile.com/quotes/about/risk-premiums-1475030/) [Values](https://sms4smile.com/quotes/about/values/) ## Related quotes > [History has not dealt kindly with the aftermath of protracted periods of low risk premiums.](https://sms4smile.com/quotes/alan-greenspan/history-has-not-dealt-kindly-with-the-aftermath-of-protracted-periods/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [We need to have a modicum of faith in people's common sense, creativity and will to survive and prosper even in the face of…](https://sms4smile.com/quotes/robert-higgs/we-need-to-have-a-modicum-of-faith-in-people-s-common-sense/) [Robert Higgs](https://sms4smile.com/quotes/author/robert-higgs/) > [But I don't know what to him about the aftermath of killing a person. 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It's the story of a serial…](https://sms4smile.com/quotes/stephen-king/in-a-brilliant-fusion-of-fact-and-fiction-jayne-anne-phillips-has/) [Stephen King](https://sms4smile.com/quotes/author/stephen-king/) > [They were anticipating a different kind of immediate aftermath of the fall of Baghdad, it turned out to be not exactly as they had…](https://sms4smile.com/quotes/colin-powell/they-were-anticipating-a-different-kind-of-immediate-aftermath-of-the/) [Colin Powell](https://sms4smile.com/quotes/author/colin-powell/) > [In the aftermath of 9/11, people had not a good time, but a deep, profound, rousing time, woke up from their ennui and isolation…](https://sms4smile.com/quotes/rebecca-solnit/in-the-aftermath-of-9-11-people-had-not-a-good-time-but-a-deep/) [Rebecca Solnit](https://sms4smile.com/quotes/author/rebecca-solnit/) > ['The Accursed' is very much a novel about social injustice as the consequence of the terrible, tragic division of classes - the exploitation not…](https://sms4smile.com/quotes/joyce-carol-oates/the-accursed-is-very-much-a-novel-about-social-injustice-as-the/) [Joyce Carol Oates](https://sms4smile.com/quotes/author/joyce-carol-oates/) > [It's common knowledge that every act has an aftermath factor. It can be positive or negative. Whatever the result its always important that you…](https://sms4smile.com/quotes/frank-matobo/it-s-common-knowledge-that-every-act-has-an-aftermath-factor-it-can/) [Frank Matobo](https://sms4smile.com/quotes/author/frank-matobo/) > ['Life's That Way' was an extraordinarily difficult book to write, because it wasn't written as a book. It was written as a journal of…](https://sms4smile.com/quotes/jim-beaver/life-s-that-way-was-an-extraordinarily-difficult-book-to-write/) [Jim Beaver](https://sms4smile.com/quotes/author/jim-beaver/) > [Most people may not think about it, but the aftermath of war is very costly. Costly not just in lives, but the treatment. Because…](https://sms4smile.com/quotes/daniel-inouye/most-people-may-not-think-about-it-but-the-aftermath-of-war-is-very/) [Daniel Inouye](https://sms4smile.com/quotes/author/daniel-inouye/) > [“She might have been there for you in the aftermath, but I was there when everything came crashing down.”](https://sms4smile.com/quotes/megan-duke/she-might-have-been-there-for-you-in-the-aftermath-but-i-was-there/) [Megan Duke](https://sms4smile.com/quotes/author/megan-duke/) > [Affirmative action was designed to recognize the uniquely difficult journey of African-Americans. This policy was justifiable and understandable, even to those who came from…](https://sms4smile.com/quotes/jim-webb/affirmative-action-was-designed-to-recognize-the-uniquely-difficult/) [Jim Webb](https://sms4smile.com/quotes/author/jim-webb/) ## More by Alan Greenspan > [Crony capitalism is essentially a condition in which... public officials are giving favours to people in the private sector in payment of political favours.](https://sms4smile.com/quotes/alan-greenspan/crony-capitalism-is-essentially-a-condition-in-which-public-officials/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [At the risk of some oversimplification, if the skill composition of our work force meshed fully with the needs of our increasingly complex capital-stock,…](https://sms4smile.com/quotes/alan-greenspan/at-the-risk-of-some-oversimplification-if-the-skill-composition-of/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [To succeed, you will soon learn, as I did, the importance of a solid foundation in the basics of education - literacy, both verbal…](https://sms4smile.com/quotes/alan-greenspan/to-succeed-you-will-soon-learn-as-i-did-the-importance-of-a-solid/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [I've always argued that this country has benefited immensely from the fact that we draw people from all over the world.](https://sms4smile.com/quotes/alan-greenspan/i-ve-always-argued-that-this-country-has-benefited-immensely-from-the/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [I cannot conceive of a politically feasible solution to this problem which will overdo cutting the deficit, where overdoing means harming the economy. 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If I couldn't prove…](https://sms4smile.com/quotes/alan-greenspan/before-i-met-ayn-rand-i-was-a-logical-positivist-and-accordingly-i/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [ Skilled shortages in America exist because we are shielding our skilled labor force from world competition. \[Visa quotas\] have been substituted for the wage… ](https://sms4smile.com/quotes/alan-greenspan/skilled-shortages-in-america-exist-because-we-are-shielding-our/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [A decline in the national housing price level would need to be substantial to trigger a significant rise in foreclosures, because the vast majority…](https://sms4smile.com/quotes/alan-greenspan/a-decline-in-the-national-housing-price-level-would-need-to-be/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [Although the outlook is clouded by a number of uncertainties, the central tendencies of the projections .. imply continued good economic performance in the…](https://sms4smile.com/quotes/alan-greenspan/although-the-outlook-is-clouded-by-a-number-of-uncertainties-the/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [At the outset of the creation of the euro in 1999, it was expected that the southern eurozone economies would behave like those in…](https://sms4smile.com/quotes/alan-greenspan/at-the-outset-of-the-creation-of-the-euro-in-1999-it-was-expected/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [We may be in a rapidly evolving international financial system with all the bells and whistles of the so-called new economy. But the old-economy…](https://sms4smile.com/quotes/alan-greenspan/we-may-be-in-a-rapidly-evolving-international-financial-system-with/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [The guiding purpose of the government regulator is to prevent rather than to create something.](https://sms4smile.com/quotes/alan-greenspan/the-guiding-purpose-of-the-government-regulator-is-to-prevent-rather/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [“government regulation cannot substitute for individual integrity.”](https://sms4smile.com/quotes/alan-greenspan/government-regulation-cannot-substitute-for-individual-integrity/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [...our market system depends critically on trust-trust in the word of our colleagues and trust in the word of those with whom we do…](https://sms4smile.com/quotes/alan-greenspan/our-market-system-depends-critically-on-trust-trust-in-the-word-of/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [It's hard to overemphasize how important Ford's deregulation was. True, most of the benefits took years to unfold-rail freight rates, for example hardly budged…](https://sms4smile.com/quotes/alan-greenspan/it-s-hard-to-overemphasize-how-important-ford-s-deregulation-was-true/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) [Explore all 204 Alan Greenspan quotes ](https://sms4smile.com/quotes/author/alan-greenspan/) ## More Aftermath quotes > [Affirmative action was designed to recognize the uniquely difficult journey of African-Americans. This policy was justifiable and understandable, even to those who came from…](https://sms4smile.com/quotes/jim-webb/affirmative-action-was-designed-to-recognize-the-uniquely-difficult/) [Jim Webb](https://sms4smile.com/quotes/author/jim-webb/) > [“She might have been there for you in the aftermath, but I was there when everything came crashing down.”](https://sms4smile.com/quotes/megan-duke/she-might-have-been-there-for-you-in-the-aftermath-but-i-was-there/) [Megan Duke](https://sms4smile.com/quotes/author/megan-duke/) > [Most people may not think about it, but the aftermath of war is very costly. Costly not just in lives, but the treatment. Because…](https://sms4smile.com/quotes/daniel-inouye/most-people-may-not-think-about-it-but-the-aftermath-of-war-is-very/) [Daniel Inouye](https://sms4smile.com/quotes/author/daniel-inouye/) > ['Life's That Way' was an extraordinarily difficult book to write, because it wasn't written as a book. It was written as a journal of…](https://sms4smile.com/quotes/jim-beaver/life-s-that-way-was-an-extraordinarily-difficult-book-to-write/) [Jim Beaver](https://sms4smile.com/quotes/author/jim-beaver/) > [It's common knowledge that every act has an aftermath factor. It can be positive or negative. Whatever the result its always important that you…](https://sms4smile.com/quotes/frank-matobo/it-s-common-knowledge-that-every-act-has-an-aftermath-factor-it-can/) [Frank Matobo](https://sms4smile.com/quotes/author/frank-matobo/) > ['The Accursed' is very much a novel about social injustice as the consequence of the terrible, tragic division of classes - the exploitation not…](https://sms4smile.com/quotes/joyce-carol-oates/the-accursed-is-very-much-a-novel-about-social-injustice-as-the/) [Joyce Carol Oates](https://sms4smile.com/quotes/author/joyce-carol-oates/) > [In the aftermath of 9/11, people had not a good time, but a deep, profound, rousing time, woke up from their ennui and isolation…](https://sms4smile.com/quotes/rebecca-solnit/in-the-aftermath-of-9-11-people-had-not-a-good-time-but-a-deep/) [Rebecca Solnit](https://sms4smile.com/quotes/author/rebecca-solnit/) > [They were anticipating a different kind of immediate aftermath of the fall of Baghdad, it turned out to be not exactly as they had…](https://sms4smile.com/quotes/colin-powell/they-were-anticipating-a-different-kind-of-immediate-aftermath-of-the/) [Colin Powell](https://sms4smile.com/quotes/author/colin-powell/) > [In a brilliant fusion of fact and fiction, Jayne Anne Phillips has written the novel of the year. It's the story of a serial…](https://sms4smile.com/quotes/stephen-king/in-a-brilliant-fusion-of-fact-and-fiction-jayne-anne-phillips-has/) [Stephen King](https://sms4smile.com/quotes/author/stephen-king/) > [In the aftermath of 9/11 and in the build-up to the invasion of Iraq, few questioned the idea that the United States was likely…](https://sms4smile.com/quotes/martin-jacques/in-the-aftermath-of-9-11-and-in-the-build-up-to-the-invasion-of-iraq/) [Martin Jacques](https://sms4smile.com/quotes/author/martin-jacques/) > [In the aftermath of any war or genocide, healing and reconciliation are ultimate aspirations.](https://sms4smile.com/quotes/janine-di-giovanni/in-the-aftermath-of-any-war-or-genocide-healing-and-reconciliation/) [Janine di Giovanni](https://sms4smile.com/quotes/author/janine-di-giovanni/) > [I wish I had been more mature. I wish I had handled the immediate aftermath of the accident involving my family better.](https://sms4smile.com/quotes/joe-biden/i-wish-i-had-been-more-mature-i-wish-i-had-handled-the-immediate/) [Joe Biden](https://sms4smile.com/quotes/author/joe-biden/) > [But I don't know what to him about the aftermath of killing a person. About how they never leave you.](https://sms4smile.com/quotes/suzanne-collins/but-i-don-t-know-what-to-him-about-the-aftermath-of-killing-a-person/) [Suzanne Collins](https://sms4smile.com/quotes/author/suzanne-collins/) > [We need to have a modicum of faith in people's common sense, creativity and will to survive and prosper even in the face of…](https://sms4smile.com/quotes/robert-higgs/we-need-to-have-a-modicum-of-faith-in-people-s-common-sense/) [Robert Higgs](https://sms4smile.com/quotes/author/robert-higgs/) > [ I can't think of any time we had a discussion \[with Dre\] about the aftermath of what happened the night before. We just had… ](https://sms4smile.com/quotes/michel-le/i-can-t-think-of-any-time-we-had-a-discussion-with-dre-about-the/) [Michel'le](https://sms4smile.com/quotes/author/michel-le/) [Browse all 218 Aftermath quotes ](https://sms4smile.com/quotes/about/aftermath/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "Any onset of increased investor caution elevates risk premiums and, as a consequence, lowers asset values and promotes the liquidation of the debt that supported higher asset prices, ... 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