Is There Risk Involved With Investing Or Does It Always Pay Off In The Long Run?

Everything has risk. Cash is full of risks - inflation and currency falls. It really depends what you invest in. The major indexes have always came back. The Nasdaq fell 76% after 2000, but came back, with the German Dax also recovering from similar falls. Even the Japanese Nikkei came back IF dividends were reinvested. In comparison, many individual stocks have gone to zero or never came back. If you want as little risk as possible you need: Globally diversified stock indexes, such as MSCI World, and not just individual countries. You could argue that the US markets are a kind of global market as well because these firms are global To reinvest dividends and nor just rely on capital growth Invest during different time horizons. So, lump sums and monthly injections. Therefore, you don?t need to worry about whether ?now is the perfect time to invest? Have smaller, medium and large cap stocks. Look at the UK market since 2000. The FTSE has done poorly in capital growth terms but OK if dividends are reinvested The FTSE 250 has done better though: Own other assets too such as bonds There are advanced techniques too such as downside-protection but those often require an advisor, or you need to be a certified investor. Read Also : Will ChatGPT replace programmers?