3 Key Investment Risks to Watch For in 2023
By The Smart Investor  •  January 31, 2023
Investment risk is a near and dear concept to all investors. In the world of finance, risk is represented by a number that is calculated based upon the price volatility of the underlying security.. However, we like to think of risk as the likelihood that an investment incurs losses instead of delivering its expected return. As it stands, risk is ubiquitous and comes in many forms for different types of investments. With equities, there is a risk of falling share prices, reduced dividends and/or share buybacks. With bonds, there is a risk of the borrower defaulting on its obligations. With real estate, there is vacancy and replacement cost risk. Here are three salient risks that investors should be aware of in 2023: 1. Interest rate risk It is no secret that the Federal Reserve has hiked interest rates aggressively to rein in inflation. The current benchmark rate stands at between 4.25% to 4.5%, representing a rise of four percentage points since March 2022....
Read the full article
By The Smart Investor
The Smart Investor is co-founded by David Kuo, Joanna Sng, and Chin Hui Leong. The company was formed in late 2019 from the ashes of the Motley Fool Singapore. The Smart Investor believes that everybody can learn how to invest, smartly. We aim to educate people on how to invest smartly by providing investing education, stock commentary and market coverage for Singapore and around the world.

Your email address will not be published.


Your Email Address will not be published

Read More Articles
More from thefinance