If you get it wrong, you may fail to maximize the return on your resources, or you could be staring at significant losses. Given the rational desire to avoid loss and reduce risk, it is easy to fall into the trap of being overly cautious and missing out on profitable opportunities. Indecision and unnecessary waiting can also be costly.
Investing will always carry some degree of risk, and we can never fully anticipate how surprises can disrupt or influence the market. The key is to not make decisions blindly. Indeed, information on potential risks and returns, as well as knowledge gained from prior experience, can be sources of confidence for any prudent investor. So, is now a good time to invest?