Bad time Quote by William Forsyth Sharpe
“Some investments do have higher expected returns than others. Which ones? Well, by and large they're the ones that will do the worst in bad times.”
About This Quote
Source Paper: The Pricing of Risky Assets, 1964
Assets that promise high returns often suffer the most during economic downturns, reflecting higher risk exposure.
In simple terms: High‑return assets tend to underperform in bad times.
Key Takeaway
Beware of high returns in risky periods.
Themes
risk
return
investment
economics
Mood
cautious
analytical
Type
financial
educational
When to use this quote
- portfolio construction
- risk assessment
- asset allocation
- economic forecasting
Key Concepts
risk premium
asset pricing
market cycles
Questions to Reflect On
- How do you balance potential returns with downside risk?
- What indicators signal a risky asset's vulnerability?
A Different Perspective
High returns may be a sign of hidden vulnerability.
![“My dear friend, clear your mind of cant [excessive thought]. You may talk as other people do: you may say to a man, "Sir, I am your most humble servant." You are not his most humble servant. You may say, "These are bad times; it is a melancholy thing to be reserved to such times." You don't mind…” quote by Samuel Johnson](https://sms4smile.com/quotes/img-quotes/590/samuel-johnson-50_appropriateness_my-dear-friend-clear-your-mind-of-cant-e_74600.jpg)
![“[What if my advisor talks only about returns, not risk?] ... It's his job to take risk into account by telling you the range of possible outcomes you face. If he won't, go get a new planner, someone who will get real.” quote by William Forsyth Sharpe](https://sms4smile.com/quotes/img-quotes/7c9/william-forsyth-sharpe-83220_accounts_what-if-my-advisor-talks-only-about-retu_322124.jpg)
