Written by The risks of investing include market risk (the risk that the market value of your investment will decline), inflation risk (the risk that the returns on your investment won’t keep up with inflation), and individual asset risk (the risk that a specific investment, such as a stock or bond, will lose value). Some other risks include credit risk (the risk that a bond issuer won’t be able to make payments), liquidity risk (the risk that you won’t be able to sell an investment quickly), and currency risk (for international investments). Diversification can help mitigate some of these risks.
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