FAQs investors ask about investment market risks

FAQ about investment risks

FAQs investors asked about investment market risks have these brief answers each linked to related lessons from the Managing Investment Market Risks course. They cover questions about managing stock market risks, dangers, and scam defenses. The links provide more details, discussion, and related FAQs. The list, questions, and lessons are regularly updated as markets, investments, and investing change. 

FAQs about investment market risks from the lesson, Dangerous dividend warning signs.

What is a good dividend yield?

Investors use two dividend benchmarks when evaluating yields: the average yield of all dividend-paying stocks and the ten-year U.S. Treasury note.

Any yields below that standard are poor; above 2% is fair, but 10% plus is excessive. While 4-6% returns are good, higher yields require caution.

Investors must remember that returns vary as market conditions change.

See more details, discussion, and FAQs in this l
esson: Dangerous dividend warning signs.

What are dividend red flags?

Rule of thumb, solid dividend-paying companies retain 50% of their profits for growth and operations and distribute the balance. Those paying more send CAUTION signals that DIVIDEND DANGERS may lurk.

Investors can check for the DIVIDEND Danger Signs, including,

1. Dividends paid from capital or debt when earnings/profits are 0 or low.
2. Any fall in cash flow is a significant sign of dividend and business risk.
3. Bad financials come in groups, so poor numbers signal more trouble.
4. High debt or a falling credit rating signals more financial weakness.
5. An outdated business, product, or service is a dividend risk.
6. Falling stock prices that produce record-high yields are signals to sell!
7. Suspended stock buybacks often signal coming dividend cuts.

For more details, discussion, and other FAQs in the lesson, Dangerous dividend warning signs.

What happens when a dividend payout is negative?

A negative dividend payout means the company's dividend is larger than the earnings. That signals severe financial trouble, saying the company can't afford the payment!

That means management has used company capital, operating cash, or borrowed money to pay dividends. All those are poor business choices that increase the company's financial risk.

Alert investors sell fast and run because few managers who get companies into financial trouble can solve the problem. Any shareholder hoping for better days must know there are solutions in hand before deciding to stay. Most fail. So, wise investors sell and move on.

See more details, discussion, and FAQs in this les
son: Dangerous dividend warning signs.

What is better, dividend or growth stocks?

Both dividend and growth stocks have advantages and wealth-building value. Income investors like dividend stocks, while traders seek faster returns with growth stocks.

Learning income investing is an easy, secure way to build long-term wealth in all market conditions and takes minimum time to manage.

Trading grows wealth faster by outperforming in strong bull markets. However, consistently effective trading strategies take more time to learn and manage. Trading profits are more elusive when markets go sideways and all but impossible in down markets.

Between the two approaches, income investing is the consistent long-term wealth-building winner. However, savvy investors get the best results by mixing these strategies in response to market conditions.

See more details, discussion, and FAQs in this lesson: Dangerous dividend warning signs.

Dangerous Dividends Flash Red Lights

Alert investors avoid the loss of capital in crashing dividend stocks by paying attention to the warning or stop signs that flash before a dividend cut happens.

How do you know if a dividend is safe?

The dividend payout ratio is the percentage of earnings paid as dividends and a fast dividend check with established companies distributing 30-50% of their profits as dividends and retaining funds for growth.

The linked Ten-Point Dividend Safety Check has more factors to consider.

A company paying more than 50% of its profits needs further scrutiny to help investors avoid unsafe dividends. However, a rapidly growing business uses all its earnings to pay for expansion. While not paying dividends, their growth rewards investors.

On the other hand, those that are unprofitable, obsolete, or underperforming cannot afford to pay dividends. Any such companies paying dividends are high-risk and avoided by prudent investors.

See more details, discussion, and FAQs in this less
on: Dangerous dividend warning signs.

What are dangerous dividend warning signs?

Dangerous dividend warnings are signals that a company can't afford to pay dividends!

Topping the list are companies paying dividends from capital funds or borrowing to pay because they do not have any or enough profit to share.

In other cases, a falling cash flow signals weakening financial fundamentals.

Also, alert investors must check the cause of any substantial share price drop. A suspended share buyback or credit downgrade is a severe yield warning. Share price declines can also warn of a yield cut, which may signal substantial financial danger!

Savvy risk-averse investors stick to the facts and do their homework but sell when the results do not meet the company's promises.

See more details, discussion, and FAQs in this les
son, Dangerous dividend warning signs.

How do investors recognize dividend dangers?

Dividend dangers have many hiding places, including poorly managed companies or those with declining cash flows.

While well-managed firms allocate a percentage of earnings to dividends, any that pay them out of capital or debt are sending warning signals. And any that tap into cash flow instead of paying a portion of profits require closer scrutiny.

Monetary woes like falling cash flow can quickly balloon, worsen credit ratings, and trigger a stock selloff.

So astute investors keep their portfolios free of dividend dangers by selling at the first serious dividend danger sign. That avoids capital losses and portfolio drama.

See more details, discussion, and FAQs in this lesson, Dangerous dividend warning signs.

FAQ about investment market risks from the lesson, Investor retirement saving dangers.

What are the retirement income risks?

Prudent investor plans must address seven specific retirement income risks:

market risk,
inflation risk,
longevity risk,
timing returns,
investment risk,
withdrawal risk,
interest rate risk,

In addition to planning for health and safety maintenance, a secure retirement needs income to support a comfortable lifestyle. A prudent plan must cover unexpected costs and have income security provisions, including lower or falling revenue.

Possible income sources include pensions, government programs, savings, investments, asset sales, or work. The fortunate may continue working for satisfaction and to contribute to society or personal fulfillment, while others may need to generate income through a full or part-time job.

For more details, discussion and FAQ see the lesson, Investor retirement saving dangers.

What are the biggest financial risks in retirement?

Poor or inadequate planning is the most significant retirement financial risk.

A complete retirement plan must consider various financial risks, including income security, inflation, interest rates, market volatility, poor investment performance, and inadequate planning.

In addition to financial risks, retirement plans must consider how public policy and political decisions, such as taxes or benefit changes, can impact retirement incomes.

Essential retirement planning must also consider longevity and health risks, including outliving one's savings, rising medical expenses, and the financial consequences of losing a spouse.

Preparing a plan that addresses these risks helps ensure a secure and comfortable retirement.

See more details, discussion, and FAQs in this lesson:
 Investor retirement saving dangers.

Retirement saving dangers lurk

Savings dangers, income risks and dangerous dividend warnings are parts of retirement planning.

What retirement planning mistakes are common?

The most common mistake is not planning for retirement, which can compromise your financial future. A well-thought-out retirement plan considers emotional, physical, and economic issues.

And relying solely on the government or inheritance for retirement security is a high-risk gamble that may not pay off.

Realistic planning is vital when setting retirement expectations and leveraging available resources. Funds for increasing healthcare costs, inflation, and taxes are essential to minimize future financial surprises.

So don't wait - start today to have brighter tomorrows.

See more details, discussion, and FAQs in this lesson, Investor retirement saving dangers.

What are retirees' biggest financial mistakes?

Common financial mistakes in retirement include:

1 Overspending without a lifestyle adjustment,

2 Not reviewing retirement or investment strategies and plans,

3 Taking early government support before it is essential,

4 An early pension cash-in unless needed,

5 Tax traps created by poor financial or investment plans,

6 Enduring family or acquaintance financial abuse,

7 Cash-poor but house rich,

8 Poor awareness and defense against fraud or scam schemes,

9 Costs and consequences of physical or social inactivity,

10 Passive responses to economic challenges or distress.

See more details, discussion, and FAQs in this lesson, Investor retirement saving dangers.

What lifestyle mistakes affect retirements?

Not planning for retirement is a significant lifestyle mistake.

Leaving a job means losing income, benefits, and company matching grants. That change significantly impacts financial, social, and personal lifestyles.

Those who still need to prioritize saving and investing may have minor, unbalanced, inappropriate, underperforming, or higher-risk holdings. A plan can help individuals get investments on track, develop a budget, and avoid poor tax planning, premature depletion of savings, or insufficient government support.

Retirement healthcare costs tend to increase significantly, so the plan must consider and provide for change and funding.

Finally, the retirement plan must contemplate the full range of lifestyle activities, time use, and legacy provisions.

For more details, discussion and FAQ see the lesson, Investor retirement saving dangers.

Can you over-save for retirement?

Not with a good retirement plan, but lack of one is often the issue rather than any saving or funding worry. Investors holding underperforming assets may increase risk, lose value, have higher costs, and create a higher tax tarp!

Saving for retirement must be integral to any well-developed financial and investment plan. But there is no one size to fit all; the plan must suit the circumstances of each investor.

For the lowest risk and highest return, the advice of a qualified fee-only financial planner can be an excellent investment.

Retirement plans require detailed case-by-case management to produce the best result. So, plan your retirement choices and alternatives to avoid any funding consequences.

See more details, discussion, and FAQs in this less
on: Investor retirement saving dangers.

FAQ about investment market risks from the lesson, Stock scam awareness defense.

Is talking about or promoting a stock illegal?

Anyone can freely talk about a stock, including any they own, and share any facts or opinions they may have.

However, all company insiders must disclose ownership, knowledge, or conflicts and can not share or use non-public information, misstate facts, or mislead the public. That inside group includes officers, directors, executives, managers, and anyone with non-public company information.

As such, people who know or should know can not use inside information to promote, buy, or sell the stock.

Even so, all prudent investors remain aware that scams, lies, and liars exist! So, wise investors avoid hassle or harm by cautiously approaching every market and stock information source.

For more details, discussion and FAQ see the lesson, Stock scam awareness defense.

What are the most common stock scams?

Pump-and-dump schemes top the list of stock scams, followed by bogus offerings.

Pump-and-dump scams sell worthless stock by promoting it with lies and hype. Victims buy as prices get pumped ever higher.

But the scammers are the sellers dumping worthless stock before running off with the money.

In contrast, bogus offers sell dreams or mythical developments where only the scam is real! Most bogus offerings have no operations, financial statements, or revenue. Scammers collect money for worthless or non-existent units or shares and then disappear to parts unknown.

There are many variations and other scams, but investors can avoid them by following good investment basics. Most importantly, do your investment homework before making any investment.

See more details, discussion, and FAQs in this lesson, Stock scam awareness defense.

How do stock scams work?

The most common stock scams are pump-and-dump schemes, where crooks use false information in newsletters, social media, and phone calls to pump stock prices, sell their shares for a profit, and leave investors with worthless stock.

Other scams include insider trading and short and distort schemes that illegally buy and sell shares on non-public information to profit, avoid loss, or use false information to drive prices down.

The bad guys' tools include aggressive boiler room sales operations and offshore crooks promoting fake companies or worthless penny stocks. Other schemers use phishing, malware, or social engineering to access and trade brokerage accounts without the owner's knowledge.

Investors can protect themselves by researching before investing.

See more details, discussion, and FAQs in this lesso
n: Stock scam awareness defense.

Stock scam awareness defense and FAQ about stock scams

Use the stock scam awareness defense to keep money in your pocket! Use the best defense against scams, awareness! Be an informed that does the homework needed to keep your money and investments safe.

How do you spot a pump and dump scam?

Pump-and-dump plays can happen with many assets. The most dramatic warning is an abrupt price surge that occurs without reason for a stock, cryptocurrency, or other investment.

Pump-and-dump warnings include:

1. Unsolicited offer from a stranger.
2. There is no substance or intrinsic value to the offer.
3. Low-value assets suddenly surge in price with no reason or sense.
4. Excessive online and social media hype offers the only support.
5. Lack of transparency about the business and all involved.

Investors avoid pump-and-dump pain by taking a pass on cryptocurrency and doing the research before any investment.

For more details, discussion and FAQ see the lesson, Stock scam awareness defense.

How do I protect myself from stock scams?

Avoid scams by becoming an informed investor who researches before making any investment. Focus your investment portfolio on lower-risk productive assets, like shares of quality dividend-paying companies. Doing that avoids most stock scams, as scams and scammers lurk in the riskier parts of the markets.

Wise investors avoid those risks by remaining focused on quality investments. These informed investors always verify to know who they are dealing with, hang up on high-pressure tactics or unsolicited offers, and research to be sure any filings and information they use are current, authentic, and from known sources.

For more details, discussion, and FAQs, see this lesson, Stock scam awareness defense.

Are pump and dump stock promotions illegal?

Pump-and-dump schemes manipulate the price of a stock or security using false, misleading, or gross exaggerations. Although illegal, they remain a common way for scammers to deceive investors.

The scammers start by buying a large inventory of inexpensive micro or small-cap shares. Then, using phone calls and social media, they promote their story and continue as long as their lies lure investors to pay higher prices until they sell out.

Then, they vanish with the funds, leaving only worthless shares behind.

Investors who do their homework avoid falling victim to such scams. Be cautious, check for the seller's registration, reject any pressure sales tactics, and always do the research before investing.

For more details, discussion, and FAQs, see this less
on, Stock scam awareness defense.

Is it illegal to mislead investors?

Yes, misleading investors is investment fraud. But catching, proving, and convicting investment crooks is very challenging. And the rare conviction, even jail time, often means recovering little or no money or compensation.

Seeking help after fraud consumes time, energy, and money but guarantees frustration and, most often, little satisfaction. The regulators, police, and legal system, including courts and financial services, have an appallingly, shamefully, uniformly lousy record.

Instead, investors can far better avoid fraud by learning to invest well, including faithfully doing investment homework before any investment. That is the best way to lock out the crooks and scammer.

For more details, discussion and FAQ see the lesson, Stock scam awareness defense.

FAQ about investment market risks from the lesson, Best stock scam tips.

How do I avoid a stock scam?

Always without exception, do your homework before investing and follow the top 4 ways to avoid stock scams including,
1 Stay away from the OTC Market or any investment without audited financial statements,
2 Hang up on an unsolicited call and delete unsolicited emails or messages,
3 Control your greed and FOMO (fear of missing out) or pressure to decide NOW!
4 Check that any company and the seller are registered and real.
Doing your homework and following these 4 tips to check for stock scams can keep your investments safe, profitable fun. For more details, discussion and FAQ see the lesson, Best stock scam tips. 

Are all stocks scams? 

Stocks are not scams, but there are scams in the stock market. To avoid scams, wise investors do their homework before making any investment.

That lets mature investors avoid scams and identify the best picks from the thousands of legitimate investments. Doing the needed research keeps stock market investing fun, engaging, and profitable. Any investor can avoid scams by educating themselves to become scam-aware and informed.

See more details, discussion, and FAQs in the lessonBest stock scam tips. 

How do I avoid stock scams?

To make informed investment decisions and protect their interests, wise investors do their research and analysis to safeguard themselves against scams and bad investments.

Savvy investors have a healthy dose of skepticism, seek multiple opinions, take the time for due diligence, and always verify the registrations of sellers.

So, do the same to avoid stock scams, and invest in yourself to become a knowledgeable and informed investor.

Research before making any investment decision and stay current with changes in the world, markets, and investments.

See more details, discussion, and FAQs in this lesson:
Best stock scam tips.

Best stock scam tips and FAQ about stock scams

Be aware, alert and do your homework to provide yourself with the best protection against stock scams. Use the best stock scam tips to keep investing safe, fun, exciting, interesting and profitable. The easy to follow tips help keep money in your pocket and working for you.

What are the best stock scam tips?

The top twelve tips to protect money from stock scams are,

1. Say no to high-pressure sales tactics.
2. Only invest in well-established markets.
3. Avoid the over-the-counter (OTC) market.
4. Research and understand before investing.
5. Verify sales rep and company registrations.
6. Hang up, cut off, or delete unsolicited contacts.
7. Learn about markets, investments, and investing.
8. Insist on audited financial statements for any investment.
9. Don't follow the herd or succumb to FOMO (Fear Of Missing Out).
10. Learn the difference between investing, trading, and speculation.
11. Manage emotions with the emotional intelligence of a wise investor.
12. Use an Investor Mind to think, feel, and act as a successful investor.

See more details, discussion, and FAQs in this lesson, Best stock scam tips.

Can a stockbroker steal your money?

Broker theft or fraud is rare, but there are easier ways to abuse client accounts, including mutual fund loading, churning, or pushing new offerings.

Mutual fund loading means filling the account with mutual funds to maximize commissions and recurring annual fees! But that can double client costs over equal ETFs with better returns and lower costs.

Churning happens with unnecessarily buying and selling as advisors churn to earn commissions on trades that offer clients little benefit.

Financial companies earn hefty fees for new offerings, including new issues and additional offerings that flood the market. To place the inventory, advisor quotas and premium commissions force the product into client accounts. But the record shows most produce poor returns.

If you suspect account abuse, act!

See more details, discussion, and FAQs in this lesson, Best stock scam tips.

How do I spot a stock scam?

It's a scam when the answer is YES to any of the following questions.

Does the seller make you feel obligated?
Do you feel FOMO or Fear Of Missing Out?
Are returns high or guaranteed at low risk?
Are you asked to pay to play or pay to win?
Must you buy now or miss a one-time opportunity?
Are calls and sales pressure persistent and repeated?
Are the contacts and investments a secret opportunity?
Is it too good to be true, a hot tip, or inside information?
Are gift cards, wire transfers, or cryptocurrency needed?
Is the offer unsolicited or from someone you do not know?

Verify the registration of both the company and the sales representative and only trust audited financial statements or credible research reports.

Any intuitive doubts are warning signs; say no and hang up!

See more details, discussion, and FAQs in this lesson, Best stock scam tips.

FAQ about investment market risks from the lesson, Investors hold patient cash.

Should I hold cash or quickly invest?

Hold cash until you know how to use it to your advantage. Although there is no one-size-fits-all strategy, many investors hold 5% cash as their "dry powder," or opportunity money.

Wise investors patiently hold while researching how to make that cash work for their goal-oriented investment plan that considers their risk tolerance.

They research to identify and select their best investment option.

That stops them from following the herd while finding opportunities to outperform markets. Doing that well takes time and effort but consistently produces good results for No-Worry Investors.

See more details, discussion, and FAQs in this l
esson: Investors hold patient cash.

Winning investors hold patient cash

Winning investors hold patient cash. Holding cash is great!

What do investors do with cash?

After paying debts and filling emergency fund needs, cash is a vital
portfolio position. Investors need a cash management strategy that allows
them to make quick decisions when needed.

Cash can act as a shock absorber for any market surprises while investors
research ways to make it work, to grow and increase investment
flexibility and opportunities.

Finally, cash allows investors to take advantage of the market's timely
opportunities.

See more details, discussion, and FAQs in the lesson, Investors hold patient cash.

Why do investors hold cash?

Investors holding cash have several advantages.

Cash is liquid and can be used immediately without having to wait for the
sale of other assets.

Cash has no stock market exposure, which helps stabilize a portfolio with
no negative return impact.

Cash protects against potential losses in adverse markets.

Cash offers the opportunity to take advantage of favorable market
movements or seize short-term investment opportunities.

Cash has little risk, minimal volatility, and is easy to manage.

See more details, discussion, and FAQs in the lesson, Investors hold patient cash.

Should cash be a portfolio position?

For savvy investors, cash is both safe and the opportunity position in an
investment portfolio.

Investors should have a cash management strategy that
combines their goals, investment plan, and risk tolerance. On the positive
side, cash offers liquidity and flexibility, but the downside includes
inflationary value erosion.

The cash management strategy should consider if it should be held in a
liquid position or be used to earn interest, other income, or capital gains.

Cash lets investors move fast to capitalize on any opportunities the market
presents.

See more details, discussion, and FAQs in the lesson, Investors hold patient cash.

What is patient investment cash?

Patient cash waits while the investor searches for productive
investment opportunities that immediately produce good returns.

However, when a productive opportunity knocks, these investors quickly
put their cash to work.

The no-worry investor's patience is revealed in how they hold
investment positions for the long term. They patiently watch and wait for
clear market direction without expecting the market to do anything specific.

All the while, they continually research to find the most productive
investment opportunities.

See more details, discussion, and FAQs in the lesson, Investors hold patient cash.

When and why should an investor hold cash?

Managing cash well is an integral part of building wealth.

The valuable asset of liquid cash gives investors flexibility and the option to
seize market opportunities.

Cash can also buffer against market volatility or unpredictable events,
offering peace of mind that ensures investors can immediately buy an
investment opportunity.

The ability to move quickly can improve portfolio returns.

So smart investors should hold the opportunity asset, cash, for enhanced
investment returns.

See more details, discussion, and FAQs in the lesson, Investors hold patient cash.

How much cash should an investor hold?

Investors should hold cash in their investment portfolio separate from their
emergency fund that covers six months of living expenses.

Portfolio cash cushions against market downturns and serves as an
opportunity asset that offers the ability to take advantage of favorable
investment circumstances.

To be worthwhile, the minimum acquisition must be at least five percent of
the portfolio. That means five percent cash is the minimum amount of cash
to hold.

But a cash position can be up to twenty percent of a portfolio.

Still, all acquisitions must meet the individual investor's risk tolerance,
goals, and financial security needs.

See more details, discussion, and FAQs in the lesson, Investors hold patient cash.

Is patient cash the same as patient capital?

Patient cash is not patient capital.

While patient cash seeks to invest in productive investments, patient
capital seeks long-term opportunities by investing in pre-productive and
early-stage ventures.

As a result, patient cash immediately earns returns when it buys a
productive investment asset. In contrast, patient capital is content to hold
without current returns and wait until a significant business transformation
vastly increases the investment value.

See more details, discussion, and FAQs in the lesson, Investors hold patient cash.

Asking FAQs about the investment market risk, selling low destroys wealth

These questions and answers cover parts of the selling low at market bottoms topic and have some overlapping answers. That overlap helps investors see how these interrelated answers fit the broad investment picture.

Why do people sell low?

In most cases, people sell low to end the pain of financial loss.

Financial loss, uncertainty, fear, and crowd psychology cause anxious or uninformed people to sell, even when doing so can result in severe portfolio damage.

People who become informed, knowledgeable investors can avoid this financially painful mistake.

See more details, discussion, and FAQs in the lesson, Selling low destroys wealth.

Selling low destroys wealth, and FAQs about investment market risks

Investors must have a response to market dips and downturns in their investment plan. The unprepared can be caught up in wealth-destroying selling panic.

Should you buy and sell low?

Any form of timing the market is a high-risk wealth trap that No-Worry Investors avoid. Instead, experienced successful investors favor long-term investment strategies.

While market timing appeals to some traders using a version of a buy low, sell high strategy, it is essential to know that such schemes can only work well in strongly trending favorable market conditions.

There has never been a consistently successful market timing scheme in the long history of stock markets. So, avoid these strategies and use the straightforward ones with a record of making money.

See more details, discussion, and FAQs in this les
son, Selling low destroys wealth.

Why is selling low a bad idea?

Investors who sell during downturns lock in permanent losses that harm their financial future. Markets can be volatile, with ups and downs. However, over time, markets always recover and rise higher. Therefore, investors who sell at the bottom miss out on the recovery and all future growth.

In contrast, wise investors hold quality investments that align with their long-term goals through market fluctuations. These experienced investors understand the role of emotions in decision-making and the importance of using reliable and productive strategies.

They never attempt to time the market.

See more details, discussion, and FAQs in this lesso
n: Selling low destroys wealth.

Why not sell when the market is down?

Every time the stock market has gone down, it comes back up! 

Selling when markets are down locks in the loss and stops any possible recovery. Instead, investors avoid any loss by waiting for positive markets to return. 

And the recovery after a market downturn often rises to new highs. So avoid emotional and financial pain by not selling at the bottom.

See more details, discussion, and FAQs in the lesson, Selling low destroys wealth.

Do you buy or sell when the market is down?

Buy, don't sell, but don't rush. Stocks are on sale when the market is down, so take advantage of the opportunity to buy at lower prices.

However, there is always the chance prices will go lower yet. So be patient. When the market trends down, accumulate cash, wait for an uptrend, then buy more shares at a lower price.

You will miss the bottom, but buying as prices keep rising has long proven to be a profitable strategy. That presumes you have already sold any losing stock.

After all, the most severely punished in market downturns are losing stock owners. So, if a downturn catches you offside holding a lousy investment, clear it out as soon as possible and get ready to buy more money-making stocks.

See more details, discussion, and FAQs in the lesson, Selling low destroys wealth.

Should I sell when a stock price falls?

Investors, traders, or speculators should have the answer in their investment plan.

Long-term investors hold quality stocks with histories of regular dividend increases. They enjoy dividends and price recovery from market dips and may choose to buy more shares when the price falls.

Traders who aim to profit from price movements disregard dividends and prefer higher prices, except for those who sell short. Experienced traders set price movement rules to save time, emotion, and capital by selling if prices drop 7% or more in all market situations.

Finally, speculators immediately go to cash or sell short in a downturn when the market or a stock price moves against them.

See more details, discussion, and FAQs in this lesso
n: Selling low destroys wealth.

FAQ about investment market risks from the lesson, Headline news market risks.

How do headline risks affect investments?

News stories can dramatically move stock prices up or down. How much often depends on the specific news, other stories as well as market reaction and direction. Possibly none of that may relate to the facts or operations of the company. The reminds us that, in the short term, stock markets are very emotional, reactive places. As such, a news headline can certainly move the prices of stocks. The impact may hit one company, a sector, or the entire market. In recent years, social media posts have had even more power to move prices and markets. True, misinformation or deliberately false stories from any source are stock market factors. Don’t be distracted from wealth-building but do like superior investors do and learn to manage them. For more details, discussion and FAQ, see the lesson, Headline news market risks.

Headline news warnings and market risks explained

What will happen next? Understanding headline risks helps investors avoid money losing emotional reactions.

Additions and edits to FAQ about investment market risks will happen as needed

As markets and investments change, the Frequently Asked Questions or, FAQ about investment market risks, questions, answers, and the related lessons will be updated as needed. All FAQ responses have brief answers with links to the related full lessons for more details and discussion. These lessons provide in-depth answers from the White Top Investor course, Managing Investment Market Risks.

Comment or ask questions on:
FAQ about investment market risks

You can email me at [email protected].

And subscribe for free to get White Top Investor lessons in your inbox from White Top Investor!

Make money work for you by knowing how investors think, feel and act. Begin building your investor mind here: The Investor Mind.

White Top Investor lessons, website layout and organization: click here.

Featured Image credits: Unsplash

Lesson code 325.16. 
Copyright © 2011-24 Bryan Kelly
WhiteTopInvestor.com

About the Author Bryan Kelly

Bryan Kelly shares decades of experience to make stock market investing accessible to everyone. His knowledge guides investors to make money work for them and avoid mistakes seeking personal empowerment, independence, and retirement comfort. The About page tells the story of how a question from his daughter began White Top Investor.

follow me on:

Leave a Comment: