STOCK FOREST - "focus on forest forget the tree"
STOCK FOREST - "Focus on forest, forget the tree"!
What are the two Risk factor you face while investing in Stock Market ?
inflation risk :
All investments face inflation risk – the risk that inflation will erode the real value of the investment. There are two good indications of inflation risk: an investment’s real return (its return after inflation) and the percentage of holding period returns that are below inflation.
Market risks
Both stocks and bonds face substantial market risk – a rise or fall in the value of the investment due to market conditions. A good indication of market risk is to simply examine the best and worst returns over one-year holding periods. Those returns were the kinds of variations that may occur within that category.

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