When investors choose to risk their capital in an individual company, they must be aware that the stock market isn’t the one-sided machine it used to be a few decades ago. Thanks to the flow of information and availability in the digital space, today's market has become more interconnected than ever before. While that may increase the number of opportunities available to every investor, one major tradeoff must be considered.
With more investment opportunities comes greater risk, which may not have been as apparent as the “machine” grows larger and more complex. In the medical sector, for instance, negative headlines or price action in a single stock can ripple widely, as seen with UnitedHealth Group (NYSE: UNH), which has plunged 30.6% in just the past month.
