Market risks have little to do with a company’s overall strength, and more to do with the affect the world’s economy can have on the market.
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The stock market is always volatile. There are risks involved in investing your money in a company’s stock. Savvy investors take the time to research the company thoroughly before investing in its stock. But one risk investors often overlook is market risk, or the volatility of one market and how it might affect another. This was seen in February 2007, in a dramatic turn when the Chinese stock market dropped a whopping 9% in a single day, causing a tidal wave effect throughout the world. The United States Dow Jones Industrial Average fell by 4.3% in the Chinese aftermath, its worst decline since the terrorist attacks of 2001.
The International Organization of Securities Commissions urges investors to take the time to learn what market risks are and how they may affect investments worldwide.
Market risks have little to do with a company’s overall strength, and more to do with the affect the world’s economy can have on the market.
Interest Rate Risks
Changes in interest rates directly affect the value of bonds. As interest rates rise, the price of previously purchased bonds falls; while dropping interest rates will increase the bond’s value.
Inflation Risks
Inflation reduces a consumer’s purchasing power, which also reduces the value of investments.
Currency Risks
When purchasing stocks or bonds issued by companies outside of the United States,any fluctuation
Seeking some bowlers...
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<div class="field-item"><p>OK, this has very little to do with retail, but I thought I'd throw it out there anyway.</p><p>Reader Chris asked me over the weekend if I know of any places in or around Raleigh that offer duckpin bowling or candlepin bowling (both varations on traditional bowling, more popular in the Northeast). I don't even remember the last time I went bowling, so I am not going to be of any help to Chris on this question. But if you know of a place, please share the details...</p></div>
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Early voting at the mall...
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<div class="field-item"><p>The Wake County Board of Elections has opened a location in Raleigh's Triangle Town Center. Located in the outdoor "commons" portion of the mall near Orvis, Men's Warehouse and Archivers, the office will be an early voting location. You can see all the details about exactly when and where you can vote on the Board of Election's <a href="http://www.wakegov.com/WakeGov/Templates/Admin/HtmlContentNoLeftNav.aspx?NRMODE=Published&NRNODEGUID=%7b4EC45CA2-E723-4C72-B233-C1DFA3902F73%7d&NRORIGINALURL=%2felections%2fonestop%2fdefault%2ehtm&NRCACHEHINT=Guest#map">Web site here</a>.</p><p>Cary Towne Center and Beaver Creek Commons in Apex will also serve as early voting sites.</p></div>
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Save on a doctor's visit...
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<div class="field-item"><p>If you've taken your child to the doctor this year and purchased two Lysol products, you've already qualified for this one (I hope you saved your receipts!). </p><p>Lysol is offering a $5 Disinfect to Protect "reward" when you buy two Lysol products and take your child to the doctor. I am honestly not sure if the reward is an actual check or some other form of coupon/certificate (anyone know?). But $5 back is $5 back. And, since the promotion runs from Jan. 1, 2008 through March 31, 2009, you may have already made the qualifying purchases and had a qualifying doctor's visit.</p><p>All you need is your receipt, a copy of your doctor's office receipt or bill and the downloadable form below... </p><br /><br /><b>Document(s):</b><br /><a href='http://projects.newsobserver.com/sites/projects.newsobserver.com/files/pediRewards08.pdf'>pediRewards08.pdf</a><br /></div>
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Good customer service...
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<div class="field-item"><p>I'm back to my favorite topic of customer service again because of <a href="http://consumerist.com/5043970/this-apology-letter-from-southwest-is-refreshingly-honest-and-informative">this post</a> on The Consumerist.</p><p>In it, a gentleman named Deepak praises Southwest Airlines (that's right, praises an airline!) for its response to his recent flight from Seattle to Oakland, which was turned around and sent back to its starting point because of a fluid leak. The letter he received explained fully what happened, apologized profusely and offered a $175 voucher as a make-up gesture. Wow... if only all companies had this customer service thing figured out...</p><p> </p></div>
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Cheerios Challenge...
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<div class="field-item"><p>Cheerios is challenging Americans to eat Cheerios for six weeks to see if it lowers their cholesterol or makes them feel better. As part of the challenge, Cheerios is offering you six $1 coupons to help motivate you to buy Cheerios. <a href="http://www.cheerios.com/promotions/challenge/">You can sign up here</a>. As the site only asked for my e-mail address, I presume these are Internet Printable coupons that will be e-mailed to you... </p></div>
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Today's coupons are up...
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<div class="field-item"><p>Good morning, everyone!</p><p>Usually on the weekend following a big holiday weekend, there are a lot of coupons, and that is the case today. In addition to the inserts, don't miss the Soy Joy coupon in Parade Magazine. It's a buy two get one free.</p><p>Today's coupons have been added to the database. As always, if you would like the Excel spreadsheet version, it is available for download below.</p><p>Also, I should note that I added a new feature to the spreadsheet this week for those of you who save the whole inserts so that you can go back to them later. At the top of my database, you should see the "Find a Coupon" heading, and below that you should now see both "Sue's coupon database" and a link to the right that says "Insert key." If you click on it, it will take you to a new page, where I give you a key for weeks when we have multiple Smart Source or Red Plum inserts. As most of you know, on those weeks, I will identify the insert in which a coupon was printed by using numbers (ie. SS1 and SS2). My new key will simply help you identify the insert by adding a detail like, "SS2 is the one with the Lasik ad on the front." But it should make identification easier for those of you who save the whole inserts. I hope it helps, anyway!</p><p>Happy clipping, everyone!!! </p><br /><br /><b>Document(s):</b><br /><a href='http://projects.newsobserver.com/sites/projects.newsobserver.com/files/Find a Coupon 0907.xls'>Find a Coupon 0907.xls</a><br /></div>
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Reminder... free ice cream today...
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<div class="field-item"><p><img src="/sites/projects.newsobserver.com/files/images/iceCreamlogo.jpg" alt="" hspace="7" vspace="7" width="123" height="85" align="left" />Remember, Cameron Village is giving away free ice cream this afternoon. Customers are asked to bring the coupon from the N&O or the <a href="http://www.shopsofcameronvillage.com/go/Poolb.cfm?MallID=921&FPURLID=2129963527">Cameron Village Web site</a> to either the Baskin-Robbins shop in Cameron Village or the special "Cone Cafe" set up on Clark Avenue near the Party Shop and Accipiter. (If it rains, the Cone Cafe plans will be scrapped, and scoops will be available only at Baskin-Robbins.) The promotion runs from 1 to 5 p.m. </p></div>
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Shutterfly deals...
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<div class="field-item"><p>Of all the photo-processing and printing Web sites, my personal favorite is Shutterfly. Not only do they do a nice job with photos, but they also offer a ton of promotions and deals.</p><p>The latest one to land in my inbox was a promotion of Shutterfly's new Share Web sites. You can design your own Shutterfly Share site, upload pictures and invite your friends and family to look at them. Through Sept. 24, Shutterfly is offering a free 8x10 photo when you order 30 prints of any size. Use the code <strong>55SUMMER</strong> when you check out. To learn more about the Shutterfly Share sites, <a href="http://www.shutterfly.com/learn/newshare.jsp">click here</a>. </p></div>
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It's National Coupon Month...
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<div class="field-item"><p>I know, I had no idea! I got a press release from the The Coupon Council this week promoting National Coupon Month. The thing that caught my eye was this statistic: <em>"The majority [of shoppers] spend less than 10 minutes per week clipping and organizing their coupons, and achieve a 7 percent average savings on their grocery bill."</em> </p><p>So to me, that means that even if you don't want to devote a lot of time to saving, you can still save a lot with a little effort. If you say the average family spends $100 a week on groceries, 7 percent of that is $7. And $7 multiplied by 52 weeks is $364. I'd say that's worth it... and of course, if you invest a little more time, you can make your savings grow in a big way. </p></div>
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Seeking outdoor adventurers...
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<div class="field-item"><p>If you like to go hiking or running on our local trails, you may want to consider entering New Balance's "Own the Trails" contest. New Balance is asking people to tell them about their favorite trails, and the winners will receive free New Balance equipment. <a href="http://www.backpackerpromo.com/newbalance/sweeps.php">You can enter here</a>.. </p></div>
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Prescription deal at HT...
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<div class="field-item"><p>I mentioned awhile back that Harris Teeter had sent me a mailing with a really good offer for transferring my prescription to the Harris Teeter pharmacy. It seems now that a slightly different version of this offer is available to all VIC card members.</p><p>Through Sept. 30, you can get a free $25 gift card for transferring your prescription to Harris Teeter. Then on top of that, you will also get a $10 credit added onto your VIC card for EACH prescription you transfer. There is no limit. So if you transfer one prescription, you'd get the $25 gift card and the $35 credit. If you transfer two, you'd get the $25 gift card and two $10 credits. That's a mighty nice incentive for a very small amount of work. You can find the details of the deal on Harris Teeter's <a href="http://www.harristeeter.com/promotions/e-vic/special_offer.aspx">Web site here</a>.</p><p>(As always, I caution do want to people who have multiple precriptions that bouncing them from pharmacy to pharmacy could be dangerous because of possible drug interactions.) </p></div>
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Get store credit for your old stuff...
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<div class="field-item"><p><img src="/sites/projects.newsobserver.com/files/images/Office%20Depot%20Tech%20Trade-In%20Main%20Page.preview.jpg" alt="" hspace="7" vspace="7" width="218" height="272" align="left" />Office Depot has launched a <a href="/www.officedepot.com/techtradein">new Web site</a> that offers consumers the chance to trade in their used electronics for store credit. Or, if the items are so old that they have no trade-in value, you can simply pay a small fee to have Office Depot recycle it and get it out of your house.</p><p>So, basically, shoppers can go to <a href="http://www.officedepot.com/techtradein">www.officedepot.com/techtradein</a> and search for the compuer, MP3 player, Smart phone, etc., that they wish to trade in. You tell the site a little bit about the condition of the product and it tells you what it's worth. If the amount is acceptable, you hit OK and receive a shipping label and instructions. Once your product has been received and inspected to make sure it matches your description, you are mailed an Office Depot gift card loaded with your trade-in amount.</p><p>Or, if you just wish to recycle items, you will need to pay a $5, $10 or $15 fee for the box and shipping, and Office Depot will take care of the rest. Seems like a mighty fine time to go hunting through your closets and garages for some old electronics to me...</p></div>
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North Hills reschedules events...
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<div class="field-item"><p>Due to the current weather situation in Raleigh, North Hills has rescheduled two events.</p><p>The center's Iron Chef Competition is now rescheduled for two weeks from tomorrow on Saturday, Sept. 20. Chefs from Bonefish and Mura will go head-to-head using ingredients from the Farmers' Market, dishing up delicious treats for you to taste. Proceeds will go to benefit the InterFaith Food Shuttle. </p><p>And, the Farmer's Market that would normally take place tomorrow has been canceled. It will return as scheduled, next Saturday from 8 a.m. to 12 p.m. </p></div>
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Friday freebies...
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<div class="field-item"><p>Oh, it's Friday... which means it's time for freebies!!</p><p>*You can request a Quaker Simple Harvest granola bar <a href="http://startsampling.com/sm/100462/captureAddress.iphtml?item=100462&source">here</a>.</p><p>*There's a sample of Secret Clinical deodorant (this is a good one because that stuff is like $8). Try this link: <a href="https://secretsport.safeprocessing.com/">https://secretsport.safeprocessing.com/</a></p><p>*I've posted other Greenies samples before, but I think <a href="http://www.greenies.com/en_US/FreeSample/">this may be a new one</a>.</p><p>*And there's a sample of Bounce dryer sheets <a href="https://pgpromotions.archway.com/bounce_us/?utm_source=news.eml.200808">here</a>.</p></div>
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Just for Men rebate...
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<div class="field-item"><p>Just for Men is offering a "Try Me Free" mail-in rebate for up to $8 when you purchase Just for Men hair color. You'll need your cash register receipt, dated before Dec. 31, 2008, plus the UPC code from the package and the mail-in rebate form that is available for download below... </p><br /><br /><b>Document(s):</b><br /><a href='http://projects.newsobserver.com/sites/projects.newsobserver.com/files/tryfree.pdf'>tryfree.pdf</a><br /></div>
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in currency exchange rates can directly affect how much a stock or bond really costs, and how much you’ll make when selling it.
Liquidity Risks
The ability to sell off your investments at the moment you choose can greatly affect your profit margins. Being unable to make trades due to foreign regulations, not being able to find a buyer, selling at a discount, among other reasons may cost you valuable assets.
Sociopolitical Risks
Worldwide events such as a terrorist attack, war, and even an election can all affect investor attitude toward the market and cause serious up or downturns. Worse yet, some catastrophic events can lead to wide-spread disruptions in financial markets all over the world, which can be risky for individual investors.
ICountry Risks
Country risks are similar to sociopolitical risks, with one important exception: they are tied to a specific country and the economic and political climate within it.
Legal Remedies Risk
When dabbling in the oversees market, keep in mind that problems which may arise with your investment must be handled by that governments market overseers, which may work very differently than those your used to in the United States. This in itself can be very risky for foreign investors.
While no one can completely avoid all market risks - that’s what makes the financial market so profitable - there are a few things every investor can do to minimize the risk.
Do Your Homework
Take the time to research all of the things that can affect your oversees investments. Stay tuned to global economic trends and changes, and be certain that you completely understand all of the practices, regulatory practices and restrictions in investing internationally.
Diversify
Vary your holdings by region, country, length of holdings (long term vs. short term), product, and sector.
Investing is always risky. But don’t let that scare you. Oversees markets can be very profitable, as long as the investor understands the ever-changing market risks associated with specific investments and takes the necessary precautions.
For the past ten years Bob Freeman has been helping people build more money in their retirements. Now he has taken his successful strategies to a new level by offering teleseminar courses to help people make a better retirement for themselves than they ever thought possible. For more tips and strategies see http://www.retirementwealthforyou.com.
