Risk is omnipresent in our daily lives. There are definitely risks in the financial markets and we must understand what they are and if we can accept them.  Below are the macro and micro risks, but the list is not exhaustive.

MACRO

Market/Systematic Risk – Market or systematic risk cannot be diversified away as it is inherent in financial market, and it affects all securities. For example, a stock market crash is a form of systematic risk. Inflationary Risk – If you do not invest in anything, you will assume inflationary risk. Goods and services will get expensive over time and your purchasing power will erode. Political Risk – The economic well being of a country depends on the policies the government makes. Good governance and stability attract investment and foster business development. Despite so, no one can guarantee the government can continue to implement sound policies, or free ......