Van Beek's blog

Two Types of Risk and the Allocation of your Savings over Different Assets

Investing means taking risks. High returns without risks are impossible. The potential higher return is the reward for taking the higher risk.

There are two different types of risk:
 

Asset Allocation of Your Savings to dimish risk

 

Dow Jones Industrial Averages DJIA Trend Trading History Chart - May 2010

Every month, Stock Trend Investing is publishing one of its trend trading history charts for free. This month, it is the trend trading chart for the Dow Jones Industrial Averages (DJIA) index.

In the chart, the blue line shows the closing price of the Dow Jones Industrial Averages index for that month.


Click here to go to the free Guide on Trend Signals that tell you when to buy and sell.


EUR/USD Exchange Rate Trend and History Chart: 20 Years

This chart for the EUR/USD exchange rate and trend shows a 20 year history. Since the Euro exists only for about 10 years we had to make some calculations. You will see later below. 20 years provides a unique historic perspective.

Trends in currency exchange rates are important for investors who invest outside their home currency zone. A foreign stock market index could move up but the currency for that market could devalue compared to your home currency. In that case, your gains measured in your home currency would reduce or could even turn negative.

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