Risk Management practice perhaps is the first things to consider when it comes to investment. See a list below on a comprehensive set of articles covering risk drivers ranging from political, macro and market related risks. Ultimately, the concept of risk in investment requires investors to carefully weigh the potential rewards against the potential risks, and to develop a strategy that aligns with their financial goals and risk tolerance.
The Impact of Macro-Economy
Investors typically consider various macroeconomic indicators such as inflation, economic growth, and monetary policy when deciding where to allocate their resources.
- 7- Important Steps: How Macroeconomic Uncertainty Impacts Stock Market VolatilityGEPUCURRENT chart by TradingView In the age of global markets, macroeconomic uncertainty affects not only global markets but also local markets. However, how macroeconomic uncertainty affects stock market volatility has not been extensively studied. This article provides an attempt to fill this gap by presenting a quantitative analysis of the relationship between macroeconomic uncertainty and… Read more: 7- Important Steps: How Macroeconomic Uncertainty Impacts Stock Market Volatility
- How to Deal with Political Risk on International Stock Markets: Evidence From a Global Portfolio Analysis in 2023The world has become increasingly interconnected in the past decade and so is the political risks associated, with the emergence of international trade and financial flows. As a result, investors must now consider international politics when making stock market investments. Political risk is a huge component of the investing landscape and can have a significant… Read more: How to Deal with Political Risk on International Stock Markets: Evidence From a Global Portfolio Analysis in 2023
- Important 7 Impacts: How do Stock Investors Use Macroeconomic Indicators to Predict the Future Direction of the Stock MarketHow do top stock investors use macroeconomic indicators to predict the stock market? One of the most significant contributors to stock market volatility is macroeconomic news releases. These releases can have a significant impact on the stock market, meaning traders must be aware of what the releases are, what they mean, and how they can… Read more: Important 7 Impacts: How do Stock Investors Use Macroeconomic Indicators to Predict the Future Direction of the Stock Market
- The Impact of US Government Stimulus Packages on Equity Market Returns.The United States government has implemented several rounds of stimulus packages in recent years to help struggling individuals and businesses. These packages have had a significant impact on the equity markets, as well as other aspects of the economy. In this article, we will examine the impact of US government stimulus packages on equity market… Read more: The Impact of US Government Stimulus Packages on Equity Market Returns.
The Impact of Market Risk
Market risk refers to the potential for an investment to experience losses due to changes in market conditions, such as fluctuations in interest rates, currency exchange rates, and the overall performance of financial markets. This type of risk can impact all types of investments, including stocks, bonds, mutual funds, and other securities.
- 9- Important Impact of Interest Rate Volatility on Stock Returns.For investors trying to maximize their returns, understanding the impact of interest rate volatility on stock returns is of utmost importance as it has a direct impact on the amount of money made. With the effects of the pandemic still rippling through the markets, the current market conditions make it essential to gain insight into… Read more: 9- Important Impact of Interest Rate Volatility on Stock Returns.
- Critical Steps: Quarterly Earnings Yields and Its Implications for Stock Market Returns in 2023.How to read quarterly earnings results? It’s a known fact that stock market returns are affected by the earnings yields of the underlying stocks. But what exactly is an earnings yield and how does it impact stock market returns? To understand this, we must first look at the definition of earnings yield and its implications… Read more: Critical Steps: Quarterly Earnings Yields and Its Implications for Stock Market Returns in 2023.
- The Impact of Commodity Prices on International Stock Returns.When it comes to understanding the impact of commodity prices on international stock returns, a great deal of research has been done over the years. From a theoretical perspective, the impact of commodity prices on stock returns is generally seen as positive, with higher commodity prices leading to higher expected returns on stocks. Moreover, there… Read more: The Impact of Commodity Prices on International Stock Returns.
- The Impact of Commodity Prices on Stock Returns: A Quantitative Analysis.The Impact of Commodity Prices on Stock Returns: A Quantitative Analysis has been an ongoing topic of interest for investors and financial analysts alike. Over the past few years, there has been a growing body of research examining the effects of commodity prices on stock returns. This research has provided valuable insights into the dynamics… Read more: The Impact of Commodity Prices on Stock Returns: A Quantitative Analysis.
- Value Investing: 6- Important Evidence of higher returns through investing compared to other strategies.Value investing is an investment strategy used by some of the most successful investors in the world, including Warren Buffett and Benjamin Graham. In this article, we will explore the evidence that shows higher returns through value investing compared to other investing strategies. Additionally, we will provide actionable steps and concrete examples to help you… Read more: Value Investing: 6- Important Evidence of higher returns through investing compared to other strategies.
The Impact of Global Trades
Global trade can have a significant impact on stock prices, as it can affect the revenue and earnings of companies that engage in international business. When there is a surge in global demand for a particular product or service, companies that produce or provide those goods or services may experience a boost in their profits, leading to an increase in their stock prices.
- Critical Impacts of Global Trade Uncertainty on Stock Market Volatility in 2023To begin the global trade uncertainty on stock market volatility, it is important to define what is meant by ‘volatility‘. Volatility is a measure of how much the price of a security fluctuates over time. When markets experience exceptional uncertainty, they are said to be volatile, meaning the price of the stock will change rapidly.… Read more: Critical Impacts of Global Trade Uncertainty on Stock Market Volatility in 2023
The Impact of Monetary Policy / The FED
The Federal Reserve (the Fed) can affect stock prices through its monetary policy decisions. The Fed has the power to influence interest rates, which in turn affects borrowing costs for businesses and consumers. When the Fed lowers interest rates, borrowing costs decrease, making it easier and cheaper for businesses to borrow money to invest in their operations, expand, or hire more employees. This can lead to increased profits, which can drive up stock prices.
- 12- Important Impacts of Quantitative Easing on Stock Market Returns.Quantitative Easing on Stock Market Returns is a policy of central banks to expand the money supply in order to stimulate an economy. The policy is often used during times of economic crisis when interest rates are at or near zero, and the economy needs a boost. But, QE also has implications for investors. In… Read more: 12- Important Impacts of Quantitative Easing on Stock Market Returns.
- 5- Critical Impacts of U.S. Monetary Policy on International Stock MarketsThe U.S. monetary policy on international stock markets has been a major factor influencing the stock markets both within and outside the country. Over the last few decades, fluctuations in the US economy have had a direct bearing on the performance of global financial markets. Through the Federal Reserve’s interest rate decisions and other measures,… Read more: 5- Critical Impacts of U.S. Monetary Policy on International Stock Markets
- 7- Important Impacts of the Federal Reserve’s Monetary Policy Stock Market Returns.When it comes to the stock market, there is no denying the importance of the Federal Reserve’s monetary policy. The Federal Reserve’s actions can have a direct and significant impact on stock market returns, so it is important for investors to understand how the Federal Reserve’s decisions will likely affect the direction of the markets.… Read more: 7- Important Impacts of the Federal Reserve’s Monetary Policy Stock Market Returns.
- Critical steps: How the Federal Reserve’s Monetary Policy Influences Stock Market Performance in 2021.The monetary policy influences stock market performance and has long been recognized as a key driver of stock market performance. The Fed uses a variety of instruments to influence the money supply, including adjusting the federal funds rate, setting reserve requirements, and engaging in open market operations. By adjusting these levers, the Fed can influence… Read more: Critical steps: How the Federal Reserve’s Monetary Policy Influences Stock Market Performance in 2021.
- Important Impacts of Political Uncertainty on Stock Market Volatility: A Study in 2023Political uncertainty on stock market volatility Investors and analysts pay close attention to changes in the Political landscape, and their effects on the stock market. For example, the 2016 election and its aftermath had a profound impact on the stock market, sparking high levels of volatility and uncertainty. But there is also evidence that these… Read more: Important Impacts of Political Uncertainty on Stock Market Volatility: A Study in 2023
Helpful Educational Sources
Below listed a few useful resources, data services and organizations that focus on investment risk.
- Coursera free online courses on risk management covers topics like how to quantify risk-to-reward using Treynor Ratio, and calculate the value at risk for investment To take this course, it is required that you are familiar basic financial risk management concepts. You can gain them by taking the guided project Compare Stock Returns with Google Sheets. https://www.coursera.org/projects/investment-risk-management
- Global Association of Risk Professions (GARP) is a not-for-profit organization and a membership association for risk managers. Its services include setting standards, training, education, industry networking, and promoting risk management practices. https://www.garp.org/
- FINRA plays a critical role in ensuring the integrity of America’s financial system—all at no cost to taxpayers. Working under the supervision of the Securities and Exchange Commission. Investor education is also one objective of FINRA. https://www.finra.org/investors/investing/investing-basics/risk