Tag: investment

The Role of Currency Risk in International Investing

Glenn Knox

Currency risk management can enhance the stability and return of international investments. Effective strategies include hedging against exchange risk as well as diversifying across regions and currencies. Currency risk (commonly referred to as Foreign Exchange Risk or FX risk) can have a direct impact on returns from international investments. Transaction Exposure Transaction exposure refers to the risk a business takes from fluctuations in foreign exchange rates between when an international transaction begins and ends. Since most international business deals don’t happen instantaneously, it is possible that currency values could change…

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The Benefits of Diversifying Your Investment Portfolio

Glenn Knox

Everybody knows the adage “Don’t put all your eggs in one basket.” Indeed, diversifying your investment portfolio is key to reaching your financial goals. Diversification refers to spreading your investments among asset classes, industries, and styles in order to reduce the risk that negative events affect all your portfolio at once. 1. It’s a way to protect against losses. As is commonly stated, “don’t put all your eggs in one basket,” this piece of advice applies equally well when investing. While every successful venture does exist, many unsuccessful investments have…

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