Risk associated with the market

If the stock market in general falls, it often means that most stocks on the market also will lose value. Interest rates can also suddenly drop-something no one can escape. Financial markets are affected by a multitude of economic variables such as inflation, the trade balance, domestic production and the available labour force. It seems that just one of these variables can cause sudden fluctuations in the stock market, especially if the results announced differ from the predictions of influential analysts and investors. Furthermore, if the stock market shifts, interest rates will probably also react.