Weekly Market Digest: The Fundamentals Of Why We Take Risk

Our Take: The Fundamentals of Why We Take Risk

The full impact of the Coronavirus remains a substantial unknown, and with another week passing, it seems that uncertainty has become a greater constant in all our lives. How long will my work situation be this way? When will I be able to go to a restaurant, or a sports event? How will this impact the economy, and by way of that, my retirement?

This uncertainty has caused one of the most volatile reactions in the stock market in living memory, but there’s a large positive that’s worth reminding ourselves of: while the world will not go unchanged as a result of this new virus, people across the world will still look to improve their personal standing.

This bodes well for the global economy in the long run and is an excellent grounding concept amidst these uncertain times.

That said, many still question what they should be doing with their investments. Is now the right time to invest? What stocks are best positioned to succeed in this market?

Rather than spinning your wheels on these questions that cannot be definitively answered, focus on what you can control. Specifically, risk – taking risk is what provides investors with the potential for return. No risk, no reward, or otherwise said, no pain, no gain.

This year, risk-taking has been painful, but we believe as long as people across the world work to improve their personal standing, they, and the companies they work for, will be rewarded with growth in value, and their investors along with them. All it is, is a matter of time.

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