Risk comes in many forms. Consider these nine ways and how they might affect your investments.
Understanding risk
Learn about the risk-return relationship, risk tolerance, and why it matters.
Why risk matters
Risk is an important consideration when you invest, as well as returns.
The risk-return relationship
Generally, the higher the potential return of an investment, the higher the risk.
What is risk tolerance in investing?
It’s important to know how much risk you are comfortable with.
Diversification
Learn the different ways diversification can help your portfolio.
What is an investment time horizon?
The length of time you expect to hold an investment until you want the money back is your time horizon.
Inflation
Learn what inflation is and how it can affect your investments.
How volatility affects your investments
Stock market volatility happens for several reasons, and can affect your returns in different ways.
Market bubbles and volatility
Volatility measures the degree of change in the price of an investment
over a period of time.
How interest rates affect your investments
An interest rate is the amount a lender charges as a percentage of the total amount borrowed.
International diversification
You can diversify your portfolio internationally as well as by asset class.
Investing and saving during a recession
A recession is usually described as an extended period of decline in economic activity.