How Risky is the stock market, on a scale of 1 to 10?

large cap stocks only.

9 Answers

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  • 7 years ago
    Favorite Answer

    Remember the adage: The public is always wrong.

    Stock markets are high again and optimism is back. Phew! The system works!

    Forgive me for being skeptical. Markets are always at their highest right before the bubble bursts. There may be some wave left to ride, but I'd be thinking about pulling out... right about now.

  • Bill
    Lv 7
    7 years ago

    This is a bad place to ask that question as you can see by all the extremely poor answers above me. The real answer is that it depends on what you mean by large caps and how long you leave your money there.

    Investing in a single large cap stock is far more risky than investing in a large cap index that has hundreds of stocks.

    If you need your money in 5 years or less, stocks are very risky. At that range you should be in a money market or CDs. At ten years, you may want to consider bonds.

    At 10+ years, and especially in the 20-40 year range, stocks are quite safe and offer good returns. You won't find any 20+ year period where the Dow is negative.

  • Mike W
    Lv 7
    7 years ago

    If you go in blind, it can be very risky 7- 10; if you do your homework and invest intelligently, your risk is lower 1-5. Also, as with anything else, investments with a potential for higher gain carry a higher risk.

  • 7 years ago

    10 (very risky).

    It's a zero-sum game. Winners take money from the losers. Not everyone can win and when everyone tries to win at once, everyone loses.

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  • 7 years ago

    7/8

  • Anonymous
    7 years ago

    4 with 10 being the best. We are in trouble, the money is worthless paper nothing to back it up with.

  • Anonymous
    7 years ago

    5

    the stock market is a cross between a ponzi scheme & a giant casino, in which the uber rich can't lose & you can't win

  • 7 years ago

    It's a lot better to have your investments in a Money Market Fund!!

    :-)

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  • Anonymous
    7 years ago

    it was a 2 after Pubs dumped post election

    It is a 5 now

    I hope this was of use

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