Stock Market Uncertainty | EnergyLink
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Stock Market Uncertainty

With the current stock market being as uncertain as it is, only one thing is actually for certain when it comes to investments and your money….

That would be that investing in solar for your property offers you guaranteed returns on your investment for 25+ years. As the stock market continues to be stagnant and unreliable, it becomes even more important to hedge your investments into a consistent reliable return.

Uncertainty in a Stock Market

Any time you put money at risk for the chance of profit, there is an inherent level of uncertainty. When new threats such as war or recession arise, the level of uncertainty increases significantly as companies no longer accurately predict their future earnings.

As a result, institutional investors will reduce their holdings in stocks considered unsafe and the move their funds to other sources like precious metals, government bonds and money-market instruments. This sell-off, which occurs as large portfolios reposition themselves, can cause the stock to depreciate.

How Everything is Effected

Uncertainty is the inability to forecast future events. People can’t predict the extent of a possible recession, when it’s going to start/end, how much it will cost, or what companies will be able to make it through unscathed.

Most companies normally predict sales and production trends for the investing public to follow assuming normal market conditions, but increasing uncertainty levels can make these numbers significantly inaccurate.

Uncertainty itself can affect the economy on both the micro and macro levels. Uncertainty on a micro level focuses on the effect on individual companies within an economy faced with the threat of war or recession, whereas the view of uncertainty on a macro level looks at the economy as a whole.

To learn more about the great returns solar can provide for you and your future, contact us at 573-777-4811!

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