Russians playing on the stock market need to consider five key risks for investors. First, political instability or changes in the political environment may affect the economic situation in the country and, as a result, the amounts invested. BitRiver financial analyst Vladislav Antonov told socialbites.ca.
“Changes in legislation, political conflicts and contradictions, sanctions; all these can create uncertainty and risk for players in the stock market,” he explained.
Secondly, economic downturns, inflation, currency fluctuations and changes in market trends can negatively affect investment portfolios, the analyst said. He explained that the Russian economy is currently affected by instability in oil prices, geopolitical tensions and relations with trading partners.
The third risk is financial. The analyst noted that losses resulting from defaults of businesses or financial institutions could create serious problems for investors. According to him, such a scenario cannot be ruled out in the case of inadequate financial policy, bankruptcy of the company in which the money is invested and low liquidity in the market.
Finally, you may face geopolitical and regulatory risks when playing in the stock market.
“Restrictions on foreign investment, tax changes or new regulatory requirements may impact investment opportunities and profitability. “Geopolitical conflicts, terrorist threats, sanctions and other international events create uncertainty in the markets, which is an extremely negative factor overall.”
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