In a world where information is at our fingertips and investment opportunities are becoming more accessible than ever, millennials and Gen Z are stepping confidently into the financial arena. But with the potential for rewards comes the reality of market risks. Understanding these risks is essential for making informed decisions and building a robust investment portfolio. Let’s delve into today’s critical market risks and explore strategies to navigate this dynamic landscape successfully.

What Is Market Risk?

Market risk refers to the potential for investors to experience losses due to factors that impact the overall performance of financial markets. This can include fluctuations in asset prices, interest rates, and economic conditions. Recognizing the different types of market risks can empower you as an investor:

1. Equity Risk: The risk of loss arising from changes in stock prices. Market volatility can lead to significant swings in equity values, making this a critical …