Our friends at FINRA do a great job of breaking down complicated information – like stock market volatility – so that non-experts can understand it.
“The recent decline in the Chinese stock market was quickly felt the world over, sending other markets tumbling and spiking volatility.
Most investors know that investing involves risks as well as rewards and that, generally speaking, the higher the risk, the greater the potential reward.
While it’s important to consider the risks in the context of a specific investment or asset class, it’s equally critical that investors consider market risk.”
Read FINRA’s outline the different types of market risks your investments may be exposed to and steps you can take to minimize or manage those risks, HERE.