Market Risk
Even if you're a great stock picker, it's tough making money holding stocks in a bear, or downtrending, market. On the other hand, you can make lots of mistakes and still rake in profits in strong markets. That's where the market expression: “Don't mistake a bull market for brains,” came from. Consequently, overall market risk is an important factor in the risk equation.
Of course, predicting future stock market direction requires knowing which way interest rates, inflation, and a host of additional economic factors are heading. Economists spend their careers trying to discover the answers to these questions, usually without much success.
Instead of pondering these unanswerable questions, we'll gauge market risk by looking at two ...
Get Fire Your Stock Analyst! Analyzing Stocks on Your Own now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
