Investing and Global Finance News

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The Risk-Reward Tradeoff

The Risk-Reward Tradeoff involves understanding the amount of risk that you are willing take in investing. The general rule is that an investor makes riskier investments in order to get higher rewards (i.e. earn more money). Low risk investments generally are expected to produce low level returns. High risk investments hopefully offer a high level… Continue Reading

More Types Of Risk

Country Risk is the risk that a country will default of its debts. When a country fails to pay its debts, many of the businesses institutions in the country are damages as well as companies outside of the country. County risk affects bonds, stocks, futures, options, and mutual funds in the defaulting country. Foreign-Exchange Risk… Continue Reading

Risk Categories

There are 2 basic risk categories: systematic risk and unsystematic risk. Systematic risk is usually a general event or phenomenon which can affect many of your portfolio’s investments. An important political happening can affect the whole market including several of your assets. The individual investor cannot do anything to protect himself against this kind of… Continue Reading

The Risk Triangle Method

After determining how much risk you can take according to your time horizon and your available bank roll, you can employ the risk pyramid method of allocating your money between various investments. The risk pyramid works by dividing the pyramid into three horizontal levels. The bottom level of the pyramid is the foundation and the… Continue Reading

Determining Risk Tolerance

Each person has his own risk tolerance level and there is no magical risk tolerance formula that works for everyone. However, there are 2 important considerations to consider: one’s time horizon and one’s bankroll. Time Horizon Before investing, one should consider his time horizon, the amount of time that he can keep his money invested.… Continue Reading

New Products from the Zaragoza Agro-Industrial Group

During the 2008 World Summit and Exposition of the Dairy Industry the Zaragoza Agro-Industrial Group introduced two new product lines into the marketplace, called Levia and Muuu. The Exposition was held at the Centro Banamex in Mexico City. Both brands are the first yogurts in Mexico which include dietary fiber, antioxidants, and Omega-3. These nutrients… Continue Reading

Financial Select Sector SPDR (XLF) Is An Opportunity And A Risk

Financial Select Sector SPDR (XLF) is an investment fund  which copies the Financial Select Sector index. At least 95% of of XLF’s investments are in the same companies that the index i9nvests in. The index is industry specific and invests in insurance, capital markets, commercial banks, diversified financial services, real estate investment funds, thrifts and… Continue Reading