What is a Downside?
Downside refers to an's potential loss in value.
How Does a Downside Work?
Why Does a Downside Matter?
Downside is the fundamental motive for avoiding any investment -- and with the risk associated with that investment. Higher-risk generally have more downside (but they have more , too); low-risk investments generally have less downside and are thus primarily concerned with preserving the value of the original investment.
Ultimately, expected upside and downside are based on estimates and educated guesses. No analyst or investor can predict the future, thus making upside and downside inherently unpredictable.