Before you get excited,  I am unfortunately not writing about the Tom Cruise film from 1983; I thought I should point that out straight away, lest you be disappointed. In fact, I'm here to discuss investment risk, and why now is a difficult time for low risk investors.

Before we consider investment risk, can we just firstly think about what risk is on a more general basis? The noun definition of the word risk from the dictionary is: 'A situation involving exposure to danger.'

We therefore all manage risk on some level in our ordinary lives as we weigh-up whether we should do something or not; and consider whether the benefit to an act, outweighs the potential consequences.

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