Episode #24 - Will the market crash in 2021? Understanding Risk 101

<p>Is the marketing crash coming?! Is investing risky?! Should I go 100% into bonds?! In this episode of the podcast, Joshua Lutkemuller, CFA breaks down the risk of investing in an easy to digest way, separating risk into 2 buckets, compensated risk and uncompensated. Simply put, why would you knowingly invest in something with uncompensated risk?! The market is going up, down and sideways, but I hope this episode will level your mind and keep the panic at a minimum.</p> <p>Did you know well over half of a population of 61,000 common stocks lead to negative wealth creation from 1990 to 2019? The article below does a great job in understand the risks of the global equity market and how to protect yourself from the startling fact that most companies will underperform in the long-run.</p> <p>https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3415739</p> <p>Article above was written by Hendrik Bessembinder, Te-Feng Chen, Goeun Choi, and K.C. John Wei.</p> <p>DISCLAIMER: WallStJunky is not financial advice, but rather financial education and information provided to make you a better investor.</p> <p><br></p> <p>Check out the WallStJunky Website: www.wallstjunky.com</p> <p><br></p> <p>Discord and Facebook Investing Communities:</p> <p><a href="https://discord.gg/xg6UaBwZ"><strong>https://discord.gg/xg6UaBwZ</strong></a></p> <p><a href="https://www.facebook.com/groups/301632014175967/"><strong>https://www.facebook.com/groups/301632014175967/</strong></a></p> <p><br></p> <p>Get yourself a free stock from WeBull Program:</p> <p><a href="https://www.webull.com/activity?inviteCode=RDLGcD4x25iE&amp;source=invite_gw&amp;inviteSource=wb_oversea"><strong>https://www.webull.com/activity?inviteCode=RDLGcD4x25iE&amp;source=invite_gw&amp;inviteSource=wb_oversea</strong></a></p> <p><br></p> <p>Reading List:</p> <p>The Little Book of Common Sense Investing - <a href="https://www.amazon.com/gp/product/1119404509/ref=as_li_tl?ie=UTF8&amp;tag=wallstjunky-20&amp;camp=1789&amp;creative=9325&amp;linkCode=as2&amp;creativeASIN=1119404509&a