Market Risk

What is Market Risk?  The price of real estate, mutual funds, stocks, bonds, and other investments may change because of political, social, and/or economic situations.  This is known as Market Risk.  For example, investors need to be aware of the political ramifications of owning the stock of international corporations.  Variations can occur due to the political climate in various countries in which they do business.  Wars and unstable governments can cause wide fluctuations in market prices.  Because of these various factors, stock prices can change overnight.