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May 11, 2005

New investing risks

Amey Stone

Just when the markets should be bouncing back as worries of the past few months recede a bit (rising crude, expanding trade gap, slowing earnings), now suddenly we are facing a whole new crop of investing risks.

Here are the three new risks investors have to weigh that have cropped up just this week:

- hedge funds imploding due to derivative bets and long/short trades in GM that went awry

- bond market freaking out due to continuing problems at auto companies and airlines

- China eventually revaluing its currency. I don't know quite what that will do to the markets, but it is sure to be major.

What new market risks have you uncovered? Let us know!

04:16 PM

Markets

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How specifically does a country like China revalue its currency? Does it just change the Yuan to dollar and other world curreny values posted, or is there a more complicated process?

Posted by: Dablekar at June 1, 2005 12:19 PM