As a result, portfolios that held international stocks without hedging
away the currency risk did not lose as much as portfolios that employed currency hedging.
You have to hedge, but you're taking an equity risk, an equity that's already risky, and hedging
away currency risk, which is a little bit of risk that's added to equity.
Not exact matches
Because investing internationally involves other
currencies, there is a certain
currency risk involved and fluctuations with
currency can add to or eat
away potential returns.
Dollar Gains as Investors Shy
Away from Risky Assets The U.S. Dollar posted a strong gain versus major
currencies on Thursday as investors pulled money out of higher
risk assets and sought refuge in the safer Greenback.
Every imposition has a consequence, however subtle it may be: befriended residents will stay in town, while neglected or annoyed one will take off for greener pastures; shake a tree in hopes that «bells» (the in - game
currency) or an item will fall out, at the
risk that a bee's nest will drop and you'll be stung instead; run over the same area of grass long enough and it will wear
away into a dirt path; plant a red rose and a white rose together, and find a pink rose growing one day from their cross-pollination.
If the Bitcoin ecosystem will keep moving in the same direction as now, when Bitcoin is competing with payment systems, not
currencies, the price
risk will be moved
away from end - users (both payers and merchants) to Bitcoin processors such as SpectroCoin, which perceive Bitcoin price
risk as an alternative to operational
risk such as fraud, chargebacks and other.
When we hear about cryptocurrencies like Bitcoin, it's usually through sensationalist articles that either declare it to be the economic savior of mankind or warn about the apocalyptic
risks of not shifting
away from fiat
currency.