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Features
- Why Private Investors Put Risk First in Building Stock Market Assets - Editor, 29 February 2008 - No Comments yet
- Poker Principles to Win No Matter Which Card China Deals - Editor, 29 February 2008 - 1 Comment
- Rising Grain Prices Bond the US with China and Allies Alike - Editor, 29 February 2008 - 1 Comment
- Start a Hedge Fund in Currencies Now! - Editor, 28 February 2008 - 1 Comment
- Lead Your Bank from Sub-Prime Greed to Meeting All Your Credit Needs - Editor, 28 February 2008 - 1 Comment
- How Australia Beats Alan Greenspan through Future Fund, and You Can Too - Editor, 28 February 2008 - No Comments yet
- Back to Business Management Basics to Survive in Today’s Stock Market - Editor, 27 February 2008 - 1 Comment
Risk management is not new to the stock market, but it has become more popular with investors of late. One of the reasons could be that so much of our familiar business has moved to an emerging market such as China. Values of assets in an exotic market can swing wildly, as terms of trade and regulations vary so much in foreign countries.
You would not normally spend evenings on the Strip in Las Vegas, to learn how to deal with China. However, there is no harm in learning the basics of dealing with opponents at the famed gaming tables of Nevada. Not that China is a mere opponent; it has huge dollar reserves, holds keys to our stock market inflows, and is the major emerging market by all accounts.
There are no signs of aliens coming to destroy us, but even so there are scenes from the 1996 movie ‘Independence Day’ developing in real life. It started with successive years of drought in Australia, a major grain exporter. China has never had to bother about growing all its food needs, but sourcing grain on the world market gets tougher by the day.
You need not indulge in any unduly aggressive investing to deal with dollar, Euro, and RMB market conditions of 2008. A bank would typically employ an army of specialists to decide on short-selling, leverage, swaps, and other derivatives. The risks are not worthwhile from your individual stand-point because the market could take turns very differently from what people predict at this point of time.
You need to be a trained sculptor, or an art critic, to appreciate the frail figure at Dupont Circle, Massachusetts Avenue & 21st, in our capital. However his writings of nearly 100 years ago continue to inspire Obama today, as much as they have Dr. Martin Luther King and Nelson Mandela in the past.
They care for the environment, love sports, and have sent troops to Iraq. You may not be impressed with the apology to their native citizens, unless you are an Aleutian, but Australians are clearly near the top of our pile of allies.
Does Ambac deserve a bail-out? Are assurances of dollars enough to prevent writedowns? How much exposure can stock or a bond take based on credit ratings anyway? Why do regulators allow Insurance industry players to take such massive risks? What should small stock investors make of the rumors in stock market circles?
Recent Videos
- Video: Most Expensive Cities in 2008 - Thursday 24 July 2008, 9:56 pm
- Video: Spotlight: Qualcomm (Part 2) - Thursday 24 July 2008, 9:45 pm
- Video: Spotlight: Qualcomm (Part 1) - Thursday 24 July 2008, 9:38 pm
- Video: Sector to Watch: Financials - Thursday 24 July 2008, 9:33 pm
- Video: Final Word - Stock Focus: Terex - Thursday 24 July 2008, 9:30 pm
Recent Articles
- Ur-Energy Inc Received AMEX Listing Approval - Editor, Wednesday 23 July 2008
- Short Selling Clamp Down - Editor, Tuesday 22 July 2008
- The Value of Analysts in Stock Market Investing - Editor, Monday 21 July 2008
- Markets Rally – But Killjoy Analysts Warn that the Bad Times are Not Yet Over - Editor, Friday 18 July 2008
- Google-Yahoo Agreement Bitter Pill for Microsoft - Editor, Thursday 17 July 2008
Recent Comments
- 29 April 2008, 03:23 am: By Dhan - Take This Financial Planning Gift Horse...
- 25 April 2008, 12:58 am: By asiaconsult - The ‘No Comment’ Clue to Mortgage...
- 24 April 2008, 02:21 am: By Investa - How Your Financial Planning Can Benefit...
- 23 April 2008, 04:56 am: By Mint - A Stock on Which You Can Bank










