# data[].attributes.headline
Stocks vs Cryptocurrency: Benefits and Risks by Mario McIntosh 

# data[].attributes.subject
Stocks vs Cryptocurrency: Benefits and Risks by Mario McIntosh 

# data[].attributes.body
Welcome classmates and professor. The topic I chose is stocks vs cryptocurrency what are the benefits and risks of both. You'll learn the differences between stocks and cryptocurrency, how you can benefit and be aware of risks from both spectrums

# data[].attributes.attachment_link.readable_text
There are many sector specific and even company specific risks in investing. In this article, however, we will look at some universal risks that every stock faces, regardless of its business.

Commodity price risk is simply the risk of a swing in commodity prices affecting the business. Companies that sell commodities benefit when prices go up, but suffer when they drop. Companies that use commodities as inputs see the opposite effect. However, even companies that have nothing to do with commodities, face commodities risk. As commodity prices climb, consumers tend to rein in spending, and this affects the whole economy, including the service economy. (For related reading, see Commodity Prices And Currency Movements.)

Headline risk is the risk that stories in the media will hurt a company's business. With the endless torrent of news washing over the world, no company is safe from headline risk. For example, news of the Fukushima nuclear crisis, in 2011, punished stocks with any related business, from uranium miners to U.S. utilities with nuclear power in their grid. One bit of bad news can lead to a market backlash against a specific company or an entire sector, often both. Larger scale bad news - such as the debt crisis in some eurozone nations in 2010 and 2011 - can punish entire economies, let alone stocks, and have a palpable effect on the global economy.

Rating risk occurs whenever a business is given a number to either achieve or maintain. Every business has a very important number as far as its credit rating goes. The credit rating directly affects the price a business will pay for financing. However, publicly traded companies have another number that matters as much as, if not more than, the credit rating. That number is the analysts rating. Any changes to the analysts rating on a stock seem to have an outsized psychological impact on the market. These shifts in ratings, whether negative or positive, often cause swings far larger than is justified by the events that led the analysts to adjust their ratings. (For related reading, see What Is A Corporate Credit Rating?)

Obsolescence risk is the risk that a company's business is going the way of the dinosaur. Very, very few businesses live to be 100, and none of those reach that ripe age by keeping to the same business processes they started with. The biggest obsolescence risk is that someone may find a way to make a similar product at a cheaper price. With global competition becoming increasingly technology savvy and the knowledge gap shrinking, obsolescence risk will likely increase over time.

Detection risk is the risk that the auditor, compliance program, regulator or other authority will fail to find the bodies buried in the backyard until it is too late. Whether it's the company's management skimming money out of the company, improperly stated earnings or any other type of financial shenanigans, the market reckoning will come when the news surfaces. With detection risk, the damage to the company's reputation may be difficult to repair - and it's even possible that the company will never recover if the financial fraud was widespread (Enron, Bre-X, ZZZZ Best, Crazy Eddie's and so on). (For related reading, see Detecting Financial Statement Fraud.)

Legislative risk refers to the tentative relationship between government and business. Specifically, it's the risk that government actions will constrain a corporation or industry, thereby adversely affecting an investor's holdings in that company or industry. The actual risk can be realized in a number of ways - an antitrust suit, new regulations or standards, specific taxes and so on. The legislative risk varies in degree according to industry, but every industry has some.

In theory, the government acts as cartilage to keep the interests of businesses and the public from grinding on each other. The government steps in when business is endangering the public and seems unwilling to regulate itself. In practice, the government tends to over-legislate. Legislation increases the public image of the importance of the government, as well as providing the individual congressmen with publicity. These powerful incentives lead to a lot more legislative risk than is truly necessary.

These two risks can operate separately or in tandem. Inflationary Risk and Interest Rate Risk
Interest rate risk, in this context, simply refers to the problems that a rising interest rate causes for businesses that need financing. As their costs go up due to interest rates, it's harder for them to stay in business. If this climb in rates is occurring in a time of inflation, and rising rates are a common way to fight inflation, then a company could potentially see its financing costs climb as the value of the dollars it's bringing in decreases. Although this double trap is less of an issue for companies that can pass higher costs forward, inflation also has a dampening effect on the consumer. A rise in interest rates and inflation combined with a weak consumer can lead to a weaker economy, and, in some cases, stagflation. (Learn which tools you need to manage the risk that comes with changing rates. For more, see Managing Interest Rate Risk.)

Model risk is the risk that the assumptions underlying economic and business models, within the economy, are wrong. When models get out of whack, the businesses that depend on those models being right get hurt. This starts a domino effect where those companies struggle or fail, and, in turn, hurt the companies depending on them and so on. The mortgage crisis of 2008-2009 was a perfect example of what happens when models, in this case a risk exposure model, are not giving a true representation of what they are supposed to be measuring.

There is no such thing as a risk-free stock or business. Although every stock faces these universal risks and additional risks specific to their business, the rewards of investing can still far outweigh them. As an investor, the best thing you can do is to know the risks before you buy in, and perhaps keep a bottle of whiskey and a stress ball nearby during periods of market turmoil.

# data[].attributes.attachment_link.description
There are many sector specific and even company specific risks in investing. In this article, however, we will look at some universal risks that every stock faces, regardless of its business. Commodity price risk is simply the risk of a swing in commodity prices affecting the business.

# data[].attributes.attachment_link.readable_text
The Canadian dollar traded around the $0.80 mark as trading came to a close on January 9. It has picked up steam since December on U.S. dollar weakness and improved rate hike odds. Statistics Canada reported an increase in inflation to 2.1% in November, and Canada also added 79,000 jobs in December, pushing employment down to a 40-year low of 5.7%. All six Canadian banks are now projecting a rate hike on January 17, which should provide even more momentum to kick off the year.

The Bank of Canada could still opt to hold off in its next meeting. Let's take a look at three stocks that could gain on Canadian dollar strength.

Air Canada (TSX:AC)(TSX:AC.B)

Air Canada stock is down 10.6% in 2018 thus far. Canadian dollar weakness late in 2017 appeared to bode ill for airliners. Air Canada and other airliners benefited from improved purchasing power for Canadian travelers. In the third quarter, Air Canada reported record system passenger revenues of $4.47 billion, which represented a 9.1% jump year over year. Traffic growth increased by 8.8% in a quarter that saw Air Canada post record operating income and revenues.

A high Canadian dollar would work to offset higher fuel costs, as oil prices have now reached two-year highs. Investors may want to take advantage of a buy-low opportunity after Air Canada has dipped 10% to start the year.

Rocky Mountain Dealerships Inc. (TSX:RME)

Rocky Mountain Dealershipsis a Calgary-based agricultural and construction equipment broker. Shares are up 1.6% in 2018 in the month as of close on January 9. Canadian dealerships may be able to take advantage of better exchange rates as the price of said equipment in North America is in U.S. dollars. The company released its third-quarter results on November 8.

Rocky Mountain Dealerships posted sales growth of 7.3% to $238.8 million and gross profit rose 5.3% to $38.8 million. Net earnings climbed 36.7% to $9 million in the quarter. The company also announced a quarterly dividend of $0.12 per share, representing a 3.3% dividend yield. The stock has increased 41% year over year. It remains an attractive growth and income play to start the year.

Canadian Tire Corporation Limited (TSX:CTC.A)

Canadian Tire is a Toronto-based retailer. It owns and operates its flagship Canadian Tire chain, as well as Canadian Tire Petroleum, and work apparel retailer Mark's. Canadian Tire stock has climbed 2.2% in 2018 thus far. Retailers like Canadian Tire also benefit from improved purchasing power in the United States.

Canadian Tire released its third-quarter results on November 9. Consolidated revenue climbed 5.6% to $175.5 million, and it included a $47.6 million jump in Petroleum revenue. Canadian Tire could also see improvement with oil and gas prices continuing the rally into early 2018. The company also declared a quarterly dividend of $0.90 per share, representing a 2.1% dividend yield.

Fool contributor Ambrose O'Callaghan has no position in any stocks mentioned.

# data[].attributes.attachment_link.title
3 Stocks That Should Benefit From a High Canadian Dollar

# data[].attributes.attachment_link.description
The Canadian dollar traded around the $0.80 mark as trading came to a close on January 9. It has picked up steam since December on U.S. dollar weakness and improved rate hike odds. Statistics Canada reported an increase in inflation to 2.1% in November, and Canada also added 79,000 jobs in December, pushing employment down to a 40-year low of 5.7%.

# data[].attributes.attachment_link.readable_text
Over the last couple of years, the term cryptocurrency has been rapidly gaining ground and understanding of its use and value in the public eye. At first it seemed unfamiliar and somewhat scary like the credit card looked to users in its early days.

You might be more familiar with terms like Bitcoin, and Ether. These are all cryptocurrencies using the Blockchain Technology to keep this currency and technology safe.

Currently, there are many types of cryptocurrency. A simple google search of the popular trend shows you the start of the growth and where it is taking us.

Source: Blockgeeks
How will cryptocurrency help you?
Fraud: Individuals cryptocurrencies are digital and cannot be counterfeited or reversed arbitrarily by the sender, as with credit card charge-backs.

Immediate Settlement: Purchasing real property typically involves some third parties (Lawyers, Notary), delays, and payment of fees. In many ways, the bitcoin/cryptocurrency blockchain is like a "large property rights database," says Gallippi. Bitcoin contracts can be designed and enforced to eliminate or add third party approvals, reference external facts, or be completed at a future date or time for a fraction of the expense and time required to complete traditional asset transfers.

Lower Fees: There aren't usually transaction fees for cryptocurrency exchanges because the miners are compensated by the network (Side note: This is the case for now). Even though there's no bitcoin/cryptocurrency transaction fee, many expect that most users will engage a third-party service, such as Coinbase, creating and maintaining their bitcoin wallets. These services act like Paypal does for cash or credit card users, providing the online exchange system for bitcoin, and as such, they're likely to charge fees. It's interesting to note that Paypal does not accept or transfer bitcoins.

Identity Theft: When you give your credit card to a merchant, you give him or her access to your full credit line, even if the transaction is for a small amount. Credit cards operate on a "pull" basis, where the store initiates the payment and pulls the designated amount from your account. Cryptocurrency uses a "push" mechanism that allows the cryptocurrency holder to send exactly what he or she wants to the merchant or recipient with no further information.

Access to Everyone: There are approximately 2.2 billion individuals with access to the Internet or mobile phones who don't currently have access to traditional exchange, these people are primed for the Cryptocurrency market. Kenya's M-PESA system, a mobile phone-based money transfer, and microfinancing service recently announced a bitcoin device, with one in three Kenyans now owning a bitcoin wallet. (Let me repeat that again. 1/3)

Decentralization: A global network of computers use blockchain technology to jointly manage the database that records Bitcoin transactions. That is, Bitcoin is managed by its network, and not any one central authority. Decentralization means the network operates on a user-to-user (or peer-to-peer) basis. The forms of mass collaboration this makes possible are just beginning to be investigated.

Recognition at universal level: Since cryptocurrency is not bound by the exchange rates, interest rates, transactions charges or other charges of any country; therefore it can be used at an international level without experiencing any problems. This, in turn, saves lots of time as well as money on the part of any business which is otherwise spent in transferring money from one country to the other. Cryptocurrency operates at the universal level and hence makes transactions quite easy.

There is no other electronic cash system in which your account isn't owned by someone else.

Take PayPal, for example: if the company decides for some reason that your account has been misused, it has the power to freeze all of the assets held in the account, without consulting you.

It is then up to you to jump through whatever hoops are necessary to get it cleared, so that you can access your funds. With cryptocurrency, you own the private key and the corresponding public key that makes up your cryptocurrency address. No one can take that away from you (unless you lose it yourself, or host it with a web-based wallet service that loses it for you).

Overall, cryptocurrencies have a long way to go before they can replace credit cards and traditional currencies as a tool for global commerce.

Fact is, many people are still unaware of cryptocurrency aka Digital Currency. People need to be educated about it to be able to apply it to their lives. Businesses need to start accepting it They need to make it easier to sign up and get started.

The future appeal of cryptocurrencies lies in allowing you ultimate control over your money, with fast secure global transactions, and lower transaction fees when compared to all existing currencies.

When used properly and fully understood it would be the initiator of many emerging systems that will fundamentally change our global economic system.

# data[].attributes.attachment_link.description
Over the last couple of years, the term cryptocurrency has been rapidly gaining ground and understanding of its use and value in the public eye. At first it seemed unfamiliar and somewhat scary like the credit card looked to users in its early days. You might be more familiar with terms like Bitcoin, and Ether.