risk

Managing Currency Risk for International Investments

Submitted by Financial Adviser on Fri, 06/22/2012 - 13:44

While investing in international assets and markets provides access to a wider range of investments than those available within Australia, and the potential for greater returns, it also carries currency risk with it. Currency volatility can significantly impact on the returns achieved on international investments. While global share markets have improved for the most part of 2010, not all investors who have investments overseas have been reaping the benefits.

Street News: No Risk at US Bancorp, Commerzbank Cut

Submitted by Financial Adviser on Thu, 06/07/2012 - 14:15

Investments Short Selling

Submitted by Financial Adviser on Thu, 03/29/2012 - 20:33

Short selling is the practice of borrowing securities to sell on the market with a view to buying the same securities back at a later date. Thus, a short seller hopes to profit from a fall in the price of the security.

Used carefully, short selling can be profitable, however, it does carry a degree of investment risk. In Australia, short selling is regulated by the Australian Securities and Investments Commission and monitored by the Australian Securities Exchange to ensure that it is not used for market manipulation.

MLC: Risk focus needed for sustainable investment

Submitted by Financial Adviser on Mon, 01/30/2012 - 13:19

From Financial Standard:

Fixed interest

Submitted by Financial Adviser on Wed, 01/25/2012 - 23:55

This is a continuation of our discussion about asset classes. A defensive component of an investment portfolio is very important for most clients to provide stability and help mitigate risk. Fixed interest securities are among the lowest risk and most liquid investments available. These characteristics make them a solid foundation for most financial plans.

Financial Leverage - Margin Call Movie

Submitted by Financial Adviser on Fri, 01/06/2012 - 01:14

Margin Call Movie

If you think margin calls only effect personal investors, watch a Margin Call movie, a thriller about an investment bank during the early stages of the financial crisis. The Margin Call movie depicts how traders are offered seven figure bonuses to sell off all of the bank’s toxic investments before the market can react to the news of their worthlessness, thereby limiting the firm's financial leverage exposure.