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Playlist Finance: Investing 37 videos
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What are systematic and unsystematic risk? Take a risk on this video and hit play.
Finance: What are Systematic and Unsystematic Risk? 14 Views
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What are systematic and unsystematic risk? Take a risk on this video and hit play.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Accounting
- Terms and Concepts / Company Valuation
- Terms and Concepts / Derivatives
- Terms and Concepts / Ethics/Morals
- Terms and Concepts / Financial Theory
- Terms and Concepts / Insurance
- Terms and Concepts / Investing
- Terms and Concepts / IPO
- Terms and Concepts / Managed Funds
- Terms and Concepts / Metrics
- Terms and Concepts / Real Estate
- Terms and Concepts / Retirement
- Terms and Concepts / Stocks
- Terms and Concepts / Tax
- Terms and Concepts / Wealth
Transcript
- 00:00
finance a la shmoop what are systemic and unsystematic risk systemic risks are
- 00:09
just endemic to the market want to invest in the stock market and compound [Plate of vegetable appear]
- 00:13
return your way into great wealth great but then you'll suffer the normal risk
- 00:19
of the system that risk specifically is this yeah best of times worst of times
- 00:25
but up over time the market goes up you just have to embrace the notion that [Man hugging a tree]
Full Transcript
- 00:31
there is systemic risk in that in the short run you can buy an S&P 500 index
- 00:36
fund here then lose like a third or whatever of your money in not too many
- 00:41
years but if you don't panic and sell just at the wrong time here right out
- 00:45
the storm and keep going well then you should be just fine by the time you
- 00:49
arrive here so that's risk that is always in the system equities rise and [Equity in the ocean]
- 00:55
fall like the tides or something like that but generally they rise and if you
- 01:00
want to swim in this bathtub well you get used to the turbulence and have an [Girl swimming against the tide]
- 01:04
airsick bag handy all right that systemic risk or systemic risk
- 01:08
what's unsystematic risk well it's bad investors or rather bad investing it's
- 01:14
panicking and selling your stock just when you should be doubling down its
- 01:18
buying lousy companies thinking that they're cheap today but not realizing [Woman runs away from smelly girl]
- 01:23
that they will always be cheap because they're lousy or in a lousy industry or
- 01:27
run by lousy management it's buying into lousy industries that also look cheap
- 01:31
but are dying hello paper and pulp is yeah anyone really think that's gonna be [Paper printing]
- 01:35
around in 20 years all right well it's believing the dreamy hopes and prayers
- 01:39
of future earnings and trusting that there really will be 5 million [Traffic on the highway]
- 01:43
driverless cars on the road in 3 years you know good luck with that we'd love
- 01:48
it to be true but ain't gonna be unsystematic risk is also investing in
- 01:52
bonds for the long-term taking very little risk when taking little risk is
- 01:57
the opposite of what you should be doing when you're a young investor so yeah
- 02:01
systematic and unsystematic risk both exist plentifully and both can bite you [Dog bites portfolio from woman]
- 02:06
right in the portfolio so you got to know what both are and embrace them
- 02:11
for what they're worth
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