Three observations about uncertainty in the markets 😟

There's always risk. But what's priced in? 🤔

There’s much to be worried about. There usually is. (Source: Deutsche Bank)

As TKer Stock Market Truth No. 7 reminds us: There will always be something to worry about.

Consider the chart above from Deutsche Bank’s Jim Reid. It summarizes what recently surveyed market participants consider the biggest risks to market stability in 2025.

It’s a long list.

BofA collected similar information in its December Global Fund Managers Survey. Like Deutsche Bank’s survey, BofA’s identified a global trade war as the top risk to markets in 2025. This was followed by a number of other major concerns.

BofA’s survey also returned a number of major risks. (Source: BofA)

Uncertainty reflects the premium investors get when they assume the risk that comes with buying stocks. Not knowing the future puts downward pressure on prices. If what we eventually realize isn’t as bad as feared, then we are rewarded with relatively high returns.

So on one hand, these lists of risks are good news: The uncertainty that comes with the persistent presence of risks means there are always potentially good returns to be earned in the market.

On the other hand, it’s a lot to worry about. And worry can mess with our thought processes.

Here are three observations about lists of risks: