"Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves."
Investing is an effective way to put your money to work and potentially build wealth. Smart investing may allow your money to outpace inflation and increase in value. But different investments offer varying levels of potential return and market risk.
Risk is an investment’s chance of producing a lower-than-expected return or even losing value. Return is the amount of money you earn on the assets you’ve invested, or the investment’s overall increase in value.
Investing in stocks, for example, has the potential to provide higher returns. In contrast, investing in a money market or a savings account likely won’t offer the same return potential, but is considered less risky than investing in stocks.
The amount of risk you carry depends on your appetite or tolerance for risk. Only you can decide how much risk you’re willing to take for the potential of higher returns. But if you’re seeking to outpace inflation, taking on some risk may be necessary. An increase in risk may provide more potential for your money to grow.
Just remember that to educate yourself as much as possible is absolutely necessary. There are safe investment options you should consider. This way you can avoid the risks of losses that are never well received and you can be as accurate as possible to get excellent results. Investing is risky, yes, but it's riskier to invest without a knowledge base to guide you through whatever your moves may be.