Every investment carries some uncertainty, but knowing the risks helps you stay in control. At CUSP, we believe awareness is the first step to making confident decisions and building wealth on solid ground.
1. Market Risk
Markets rise and fall — and your investments can too.
What it means: Stock, ETF, or portfolio values may change because of interest rates, inflation, global events, or economic cycles.
Example: A sudden recession might cause prices across the market to dip, even for strong companies.
2. Concentration Risk
Putting all your eggs in one basket makes you more vulnerable.
What it means: If you invest heavily in just one sector or asset, you’re more exposed if that sector struggles.
Example: Holding only tech stocks could hurt if the tech industry faces a downturn.
How to reduce it: Diversify — spread your investments across sectors, geographies, and asset types.
3. Currency Risk
When you invest internationally, exchange rates matter.
What it means: Since CUSP gives you access to US stocks and ETFs, changes in the USD can affect your returns.
Example: If the US dollar weakens against your home currency, your gains may be worth less when converted back.
4. Liquidity Risk
Some investments are easier to sell than others.
What it means: Large, popular stocks usually sell quickly. Smaller or niche funds may take longer and could impact the price when sold.
5. Inflation Risk
Your returns need to outpace inflation to protect your future purchasing power.
Example: If inflation is 5% and your investment earns only 3%, the real value of your money decreases.
6. Regulatory & Geopolitical Risk
Markets don’t exist in isolation — politics and policy play a role.
What it means: Changes in laws, regulations, or international events can affect companies and investors.
Example: New trade restrictions or tax laws may impact company profits and market returns.
The bottom line: Every type of investment involves some level of risk — but by understanding them, diversifying wisely, and staying informed, you can build with confidence. CUSP is here to guide you every step of the way.