What is Risk?

What is Risk?

From Talking Real Money - Investing Talk by Don McDonald

June 9, 2026 · 29 min

About this episode

Don and Tom discuss the differences between smart and dumb risks in investing, particularly in the context of younger investors' beliefs about risk-taking.

Don and Tom explore the difference between smart risk and dumb risk in investing, sparked by new survey data showing younger investors increasingly believe they must take big risks to achieve their financial goals. They discuss the rise in stock trading, options speculation, and meme-stock behavior, contrasting those activities with evidence-based risks such as broad stock market investing, factor tilts, and maintaining efficient use of cash. They also answer a listener question from a recent...

People in this episode

Host: Don McDonald

Topics covered

  • risk in investing
  • smart risk
  • dumb risk
  • younger investors
  • stock trading
  • options speculation
  • meme stocks

Keywords

  • risk
  • investing
  • younger investors
  • stock trading
  • options speculation
  • meme stocks
  • financial goals

Mentioned in this episode

Organizations: stock trading, options speculation, meme-stock behavior, broad stock market investing, factor tilts, efficient use of cash

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