Share Market Investors: How risky is it to invest in the Australian Stock Market?
They do say that in order to succeed in life, one must always take a risk. While for some investors staying on the safe side of risk is certainly advisable, those who do venture out a bit more can be rewarded more. This is precisely what the stock market offers. The fact here that you do need to make a note of is that there are many types of investment with varying degrees of reward. As a rule of thumb many people opt for safe investments such as blue chip stocks.
Yet while these are more likely to be a solid investment, offering regular dividends and stable capital growth you may miss out on the spectacular growth that is often attributed to 'spec' stocks. These are those that maybe in sectors that are considered 'hot' such as certain mining & commodity stocks, such as Uranium or Iron Ore or whatever sector may be under the investment spot light at the time.
This is something that you need to ponder over, but the paramount factor should always be - what suits your investment profile. This is of course a decision you or your financial advisor will need to make.
If you are looking at the Australian Stock Market in general, and you were to consider the recession of 2008, this global phenomenon did not affect Australia to such a great degree. This is another good reason why investing in the Australian stock market while being a risk is also a calculated risk.
In addition to this information, you must remember that education really is the key. When it comes to the stock market there are a great many factors that you you can learn. This is surely easier said than done especially if you are an amateur. As evidence also shows, those who are in professions that deal in economics or accounting can easily pick up the science of how to invest in the stock market. Needless to say, this is something that you do need to consider in depth.
Investment in the stock market can be considered for the short, medium or long term. Consider your financial portfolio. If you are already in property investment then maybe you should also consider buying stocks to give your investment portfolio some balance. The fact of the matter here is that you can earn good income from an investment that can be easily and quickly liquidated should the need arise which is very different from many other types of investments such as property.
To use that well worn cliché, 'it is not rocket science' and something that with a bit of research and persistence that can prove to be both financially and intellectually rewarding.