Investment risk can be high or low. A cash ISA can be considered as low risk. A high risk investment might be a small technology startup stock – which could either be the next Google, or fail completely.
The end of 2018 saw some unseasonal gloom among the financial markets. Traders seemed to be convinced that the long recovery from the great recession had finally come to an end, and that a downturn was on the way.
The FTSE 100 has dropped 10% since the highs of May. Wall Street suffered its biggest fall in 8 months last week, while European stock markets plunged to their lowest level in 20 months.
What is going on, and should you be worried?
There is more to investing than simply buying a share you like the sound of, and sitting back and hoping. You might be lucky, but the chances are that you would be much luckier if you have an Investment strategy.
It wasn’t so very long ago that the FTSE100, the index of the 100 companies trading on the London stock exchange, was at an all-time high.
Boosted by the fall in Sterling after the Brexit vote, the businesses involved were enjoying an apparent bonanza as UK produced goods became bargains in overseas markets.