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Risk

Risk in investing and personal finance is the uncertainty, usually that something bad could happen that would adversely affect the value of your investments. In business risks are analyzed from all sorts of angles but in personal finance and investing the main risks to consider are that a company you bought into will not do as well as the market had anticipated for whatever reason and its stock price declines. The risk of higher than anticipated inflation will mean that the future payments you receive from stocks or bonds will be worth less than anticipated. There is a whole raft of other risks relating to currency, markets, technology and natural and man-made disasters.

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Andy

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