Question
Wht is your opinion? comment on it 1. Why do you suppose there is always a risk versus reward dilemma when investing? There's a risk/reward
Wht is your opinion? comment on it
1. Why do you suppose there is always a risk versus reward dilemma when investing? There's a risk/reward dilemma when investing because in reality, you could lose it all. Imagine if you invested in Blockbuster 15 years ago. 2. Do you think your risk appetite will change throughout your investing life? Why or why not? I think my risk appetite will change once I have (hopefully) money to "play" with. I can't afford to be risky right now since I can barely pay my bills as is. 3. Given your current risk/reward appetite, give examples or your lowest and highest risk asset you would put in your portfolio. My highest risk asset would be Virgin Galactic, and my lowest risk asset would be Amazon (obviously Amazon isn't doing so well right now, but 4 weeks ago this would be my answer). 4. What are some factors you think can add risk to the markets and what are some factors that can lower risk to the markets? Obviously, we're seeing COVID-19 add major risk to the market right now. Honestly, anything unexpected that happens in the world hurts stocks. Going outside is risky. I honestly don't know what lowers/could lower risk in the stock market. As we learned, in a personal portfolio- diversifying greatly lowers risk. 5. Based on your knowledge and experience do you think markets in general are currently more, less, or just as risky as historical norms? Any sectors less or more risky in your view? I think it's really risky right now since we have no idea what this current virus is capable of. I don't think it's something to necessarily be SCARED of, but factories are shutting down overseas which is halting/slowing production for many multinational companies. Technology is risky right now, and I would say pharmaceuticals are probably less risky at the current moment.
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