Market risk

Market risk refers to the possibility that an investor will lose money due to poor market performance or volatility. There’s no way to eliminate market risk perse, but there are ways that you can learn to reduce risk by how you invest.
Example: Political unrest or even elections can be a source of increased market risks ask investors worldwide wait to see how the outcome will affect local and global economies. Other factors that can increase market risk include terrorist attacks, natural disasters, rapid changes in interest rates, and a major recession.

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