Investing always comes with risk.
Investing always comes with risk. The question for most new investors will be how much risk they are willing to take on.
Conventional wisdom often says that younger investors tend to be able to afford greater risks, since they will, in theory, have the rest of their working lives to earn back any potential losses in most cases. That assumes that a young investor doesn’t have other debt, which would otherwise eat away at profits.
High-risk stocks often deliver the biggest gains.
Risk management is the core of successful long-term investing. Investors comfortable with risk can set themselves up for huge long-term gains by identifying the best highly volatile, high-beta stocks to buy. Stocks with betas of 1.5 or higher tend to be at least 50% more volatile than the S&P 500. That volatility can generate huge swings in share price in the near term that create too much risk for some investors.
stock portfolios that we think are risky business. Of course, we don’t know for sure that they’re heading down; so don’t sell them short based on our opinion. However, you might want to do a little extra due diligence if you own them. are potentially at
risk of dividend reductions or suspensions if a recession occurs in the near future.