This avoids inserting
currency risk into the conservative portion of a portfolio.
Not exact matches
Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft; 6) the effect on aircraft demand and build rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign
currency exchange rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter
into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the
risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness of any interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the
risks of doing business internationally, including fluctuations in foreign current exchange rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
On Thursday, Parliament's Treasury Committee launched an inquiry
into the role of digital
currencies in the U.K., including the opportunities and
risks they may bring to consumers, businesses and the government.
Such
risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which United Technologies and Rockwell Collins operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices, interest rates and foreign
currency exchange rates, levels of end market demand in construction and in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions and natural disasters and the financial condition of our customers and suppliers; (2) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (3) the scope, nature, impact or timing of acquisition and divestiture or restructuring activity, including the pending acquisition of Rockwell Collins, including among other things integration of acquired businesses
into United Technologies» existing businesses and realization of synergies and opportunities for growth and innovation; (4) future timing and levels of indebtedness, including indebtedness expected to be incurred by United Technologies in connection with the pending Rockwell Collins acquisition, and capital spending and research and development spending, including in connection with the pending Rockwell Collins acquisition; (5) future availability of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope of future repurchases of United Technologies» common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash, including in connection with the proposed acquisition of Rockwell; (7) delays and disruption in delivery of materials and services from suppliers; (8) company and customer - directed cost reduction efforts and restructuring costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes in political conditions in the U.S. and other countries in which United Technologies and Rockwell Collins operate, including the effect of changes in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general market conditions, global trade policies and
currency exchange rates in the near term and beyond; (16) the effect of changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations in the U.S. and other countries in which United Technologies and Rockwell Collins operate; (17) the ability of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the
risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may give rise to a right of one or both of United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee of $ 695 million to United Technologies or $ 50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the market price of United Technologies» and / or Rockwell Collins» common stock and / or on their respective financial performance; (20)
risks related to Rockwell Collins and United Technologies being restricted in their operation of their businesses while the merger agreement is in effect; (21)
risks relating to the value of the United Technologies» shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22)
risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23)
risks associated with merger - related litigation or appraisal proceedings; and (24) the ability of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel.
«The U.K. is about one seventh of the European market, in terms of business and population, so there's plenty of market share to be had without entering
into the kind of
currency risks that are implicit in the U.K.,» says Roper.
The four conglomerates originated in different sectors, but their underlying business model is the same: cultivate powerful allies in the Communist Party; use those relationships to win regulatory and property concessions; gather investment from friends, family and other proxies of party elites
into a murky, unregulated private holding company; borrow heavily from state - owed banks and other sources to finance prodigious growth plans; invest as aggressively as possible in stock and property overseas as a hedge against slower growth in China and the
risk of a weaker Chinese
currency.
If you hedge half of your foreign holdings back
into Canadian dollars, you can reduce your
risk without making a specific bet on which way a
currency will go.
Large flight to quality flows
into the dollar and yen also
risk bringing on alarm about emerging markets and a return to concern about
currency wars.
«The
risk in the FX universe is that the current dollar squeeze turns
into a more enduring fundamental rally,» ING Groep NV
currency strategist Viraj Patel wrote in a note Monday.
Moreover, as inflation is less demand driven and the result of external factors (
Currency, commodity prices), raising interest rates
risks plunging the economy
into a recession.
As bitcoin is still relatively new, Zug immediately converts all bitcoin payments
into Swiss fiat
currency to minimize
risk.
You can check the previous posts about What are stocks and how to value them, How does
Currency Trading Work, How are
Currencies Traded, Investing in Commodities, What Fundamentals Affect Commodity Prices, What are ETF's, What are Options, How are Options» Prices Structured, Investing for Beginners Part 2 — Different Investment Strategies, When does Buy and Hold not Work, An Unconventional Approach to Buy and Hold, An Unconventional Approach to Buy and Hold Part 2, How the Investment Advisor Game is Played, An Introduction
Into «Secular Investing», Don't Short When it Comes to Secular Investing, An Introduction into Trend Following, An Introduction into Technical Indicators, When does Trend Following Not Work, Risk Management for Trend Followers, An Introduction to Contrarian Investing, Using Oscillators for Contrarian Investing, Using Magnitude Extreme vs. Time Extreme, Contrarian Investing can be Used for Different Time Fr
Into «Secular Investing», Don't Short When it Comes to Secular Investing, An Introduction
into Trend Following, An Introduction into Technical Indicators, When does Trend Following Not Work, Risk Management for Trend Followers, An Introduction to Contrarian Investing, Using Oscillators for Contrarian Investing, Using Magnitude Extreme vs. Time Extreme, Contrarian Investing can be Used for Different Time Fr
into Trend Following, An Introduction
into Technical Indicators, When does Trend Following Not Work, Risk Management for Trend Followers, An Introduction to Contrarian Investing, Using Oscillators for Contrarian Investing, Using Magnitude Extreme vs. Time Extreme, Contrarian Investing can be Used for Different Time Fr
into Technical Indicators, When does Trend Following Not Work,
Risk Management for Trend Followers, An Introduction to Contrarian Investing, Using Oscillators for Contrarian Investing, Using Magnitude Extreme vs. Time Extreme, Contrarian Investing can be Used for Different Time Frames
While the recent growth is indeed a positive indicator - but the
currency is still at a
risk because even a slight downtrend can set things
into a reverse motion and the price can fall back to where it was before the uptrend began - resulting in a $ 102 - $ 98 target on the lower end.
Constructive global backdrop including improved
risk appetite and strong growth will send investors deeper
into select EM
currencies.
Hong Kong and overseas investor who holds a local
currency other than RMB will be exposed to
currency risk if he / she invests in a RMB product due to the need for the conversion of the local
currency into RMB.
Examples of these
risks, uncertainties and other factors include, but are not limited to the impact of: adverse general economic and related factors, such as fluctuating or increasing levels of unemployment, underemployment and the volatility of fuel prices, declines in the securities and real estate markets, and perceptions of these conditions that decrease the level of disposable income of consumers or consumer confidence; adverse events impacting the security of travel, such as terrorist acts, armed conflict and threats thereof, acts of piracy, and other international events; the
risks and increased costs associated with operating internationally; our expansion
into and investments in new markets; breaches in data security or other disturbances to our information technology and other networks; the spread of epidemics and viral outbreaks; adverse incidents involving cruise ships; changes in fuel prices and / or other cruise operating costs; any impairment of our tradenames or goodwill; our hedging strategies; our inability to obtain adequate insurance coverage; our substantial indebtedness, including the ability to raise additional capital to fund our operations, and to generate the necessary amount of cash to service our existing debt; restrictions in the agreements governing our indebtedness that limit our flexibility in operating our business; the significant portion of our assets pledged as collateral under our existing debt agreements and the ability of our creditors to accelerate the repayment of our indebtedness; volatility and disruptions in the global credit and financial markets, which may adversely affect our ability to borrow and could increase our counterparty credit
risks, including those under our credit facilities, derivatives, contingent obligations, insurance contracts and new ship progress payment guarantees; fluctuations in foreign
currency exchange rates; overcapacity in key markets or globally; our inability to recruit or retain qualified personnel or the loss of key personnel; future changes relating to how external distribution channels sell and market our cruises; our reliance on third parties to provide hotel management services to certain ships and certain other services; delays in our shipbuilding program and ship repairs, maintenance and refurbishments; future increases in the price of, or major changes or reduction in, commercial airline services; seasonal variations in passenger fare rates and occupancy levels at different times of the year; our ability to keep pace with developments in technology; amendments to our collective bargaining agreements for crew members and other employee relation issues; the continued availability of attractive port destinations; pending or threatened litigation, investigations and enforcement actions; changes involving the tax and environmental regulatory regimes in which we operate; and other factors set forth under «
Risk Factors» in our most recently filed Annual Report on Form 10 - K and subsequent filings by the Company with the Securities and Exchange Commission.
The dollar is strengthening now, which affects your international investment returns (
currency risk as you mentioned) so going gonzo
into that right now may not be a good idea considering the headwinds.
There is also that matter of
currency risk to take
into consideration when working out your allocations.
And then of course there are the benefits of being part of a
currency union which, without going
into all the «will they do what they say they will do» stuff that I have talked about before, will be put at
risk with independence.
The dollar is strengthening now, which affects your international investment returns (
currency risk as you mentioned) so going gonzo
into that right now may not be a good idea considering the headwinds.
There is also that matter of
currency risk to take
into consideration when working out your allocations.
A portfolio manager who must purchase foreign securities with a heavy dividend component for an equity fund could hedge
risk by entering
into a
currency swap.
A company is exposed to
currency risk when income earned abroad is converted
into the money of the domestic country, and when payables are converted from the domestic
currency to the foreign
currency.
It's easier to put your money
into companies you know, plus
currency risk and the dividend tax credit are real factors.
Many investors have already recognized this trend, as we've seen record flows
into ETFs that are designed to hedge
currency risk:
[2] In addition to the credit
risk on the bond issuer, the investor also takes on
currency risk since the foreign
currency denominated coupon payments will have to be exchanged
into Japanese Yen for the retail investor or if the investor should wish to sell the bond and exchange the proceeds from the sale back
into Japanese Yen.
However, I would note the more recent revival of mercantilism & a new willingness of many countries to diversify
into real assets (rather than
currencies / bonds)-- this could pose a new and more substantial / elevated
risk of decline for the dollar as a reserve
currency (vs. the historical example of sterling).
However, if the underlying
currency in one of your trades moves against you, the leverage in the Forex trade will magnify your losses and these losses may add up very quickly and without sufficient margin remaining in your account, you run the
risk of those losses turning
into realised losses.
Most sites writing on index investing would recommend that beginner investors buy
into index funds that follows their home country's index (minimizes
currency risk).
Whether exchanging U.S. dollars
into a foreign
currency or converting a foreign
currency to the U.S. dollar, there are
risks and costs associated with this money movement.
Keep in mind that the moment you go global, some additional
risk factors come
into the equation, including foreign
currency fluctuations.
Or do they «cancel out», as one would expect from a naive mathematical perspective, and any
risks / opportunities are purely equivalent to those of simply changing my money
into the other
currency and waiting to see what happens with the exchange rate, added to those associated with the stock (ignoring
currency)?
However, the
currency risk comes
into play when the EUR / USD exchange rate changes.
This substantially lowers the
risk to investors that inflation is priced
into the exchange rate for local
currencies.
In addition, no assurance can be given that the Fund will enter
into hedging or other transactions (including hedging exposure to non-U.S.
currency exchange rate
risk) at times or under circumstances in which it may be advisable to do so.
The example of such foreign exchange
risk may be in an investment with the
currency exchange rate during converting money to another
currency when its value is decreasing or increasing as if it needs to be converted back
into the original
currency.
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.
Obviously, I'm doing this at the extreme
risk of losing all of the money I put
into BTC or any other digital
currency.
However, the central bank is still hesitant on allowing cryptocurrency trading as explained by the chairman of State Duma Committee for Financial Markets, Anatoly Aksakov, «The central bank is against the legalization of this type of digital
currency, since in this case, citizens can start actively investing in crypto - tools, not taking
into account possible
risks.»
In order to guard against this
risk, EthSuisse intends to periodically convert proceeds from the sale of ETH
into fiat
currencies instead of BTC.
«Given that bitcoin and other
currencies have not been introduced by the central bank as the official
currency, as well as the
risk of buying it and the activity of traders in this field, more precautions are coming
into the market because of the possibility of malice.»
To reduce
risk, the city instantly changes bitcoin
into Swiss
currency.
US Senator Tom Carper, chairman of the committee, said last week that the aim of the hearing, titled «Beyond Silk Road: potential
risks, threats, and promises of virtual
currencies», is to «dig
into what a whole - government approach to this new and unique technology may look like».
In 2014, he put 1 % of his net worth
into Bitcoin, judging that the digital
currency's potential for large - scale economic disruption (see Forbes» cover story on the coin revolution) outweighed the
risk of a total loss.
Uphold has helped many members weather market volatility, as they can instantly move funds
into traditional fiat
currencies in order to shelter against volatility or hedge against
risk.
An inquiry
into digital
currencies from British lawmakers will investigate the potential consumer and business
risk of cryptocurrencies.
In addition, Bitcoin processors like BitPay fully absorb the
currency conversion
risk when converting bitcoin
into the merchant's home
currency (e.g. US dollar or euro).
According to the report, as the number of businesses accepting digital
currency payments grows, there is an increasing
risk of criminals using the
currencies to launder funds without needing to cash out
into non-digital, or «fiat»
currencies.
«Given that bitcoin and other
currencies have not been introduced by the central bank as the official
currency, as well as the
risk of buying it and the activity of traders in this field, we want investors and people to follow precautions that are coming
into the market, due to the possibility of malice.»
«The Central Bank is against the legalization of this type of digital
currency (that can be exchanged), since in this case, citizens can start actively investing in cryptocurrencies, not taking
into account possible
risks,» said Anatoly Aksakov, chair of the State Duma Committee for the Financial Market.