Skip to Content

Uncertainty

What is uncertainty?

Uncertainty is the lack of confidence in how an investment or the market will perform in the future.

A variety of factors can cause uncertainty. A changing political landscape, trade wars, a pandemic, or insufficient information can increase the uncertainty of market behavior.

Investors may face risks when dealing with investments that have a high degree of uncertainty. The less information available about how an investment will perform will make the market view the investment negatively.