What are the main threats to the stock markets? Market risk is the possibility that an individual will incur losses as a result of various factors that affect the overall performance of investments in the stock markets. However, as inflation increases due to higher commodity prices and crude oil, central banks would be forced to tighten monetary policy, raising borrowing costs and reducing market liquidity. For the economies still in recovery mode, the tightening next year may be one of the biggest downside risks. Ravi Singhal, vice chairman at GCL Securities, also cites rising inflation and Covid-19 as the main threats to the markets.

Source: Mint January 16, 2022 03:36 UTC