Data Update 4: Country Risk and Currency Questions!
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In my last post, I looked at the risk premiums in US markets, and you may have found that focus to be a little parochial, since as an investor, you could invest in Europe, Asia, Africa or Latin America, if you believed that you would receive a better risk-return trade off. For some investors, in countries with investment restrictions, the only investment options are domestic, and US investment options may not be within their reach. In this post, I will address country risk, and how it affects investment decisions not only on the part of individual investors but also of companies, and then look at the currency question, which is often mixed in with country risk, but has a very different set of fundamentals and consequences.
Data Update 4: Country Risk and Currency Questions!
Data Update 4: Country Risk and Currency…
Data Update 4: Country Risk and Currency Questions!
In my last post, I looked at the risk premiums in US markets, and you may have found that focus to be a little parochial, since as an investor, you could invest in Europe, Asia, Africa or Latin America, if you believed that you would receive a better risk-return trade off. For some investors, in countries with investment restrictions, the only investment options are domestic, and US investment options may not be within their reach. In this post, I will address country risk, and how it affects investment decisions not only on the part of individual investors but also of companies, and then look at the currency question, which is often mixed in with country risk, but has a very different set of fundamentals and consequences.