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Diversify your investment risk
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All investments carry risk. But, as an investor, one of the biggest risks you face is that of not achieving your long-term goals, such as enjoying a comfortable retirement and remaining financially independent throughout your life. To help reach your objectives, you need to own a variety of investment vehicles — and each carries its own type of risk.

If you spread your investment dollars among vehicles that carry different types of risk, you may increase your chances of owning some investments that do well, even if you own others that aren’t. As a result, you may be able to reduce the overall level of volatility in your portfolio. (Keep in mind that diversification can’t guarantee a profit or protect against all losses.)

To diversify your risk factors, you first need to recognize them. Here are some of the most common types of investment risk:

Market risk — This is the type of risk that everyone thinks about — the risk that you could lose principal if the value of your investment drops and does not recover before you sell it. All investments are subject to market risk. You can help lessen this risk by owning a wide variety of investments from different industries and even different countries.

Inflation (purchasing power) risk — If you own a fixed-rate investment, such as a Certificate of Deposit (CD), that pays an interest rate below the current rate of inflation, you are incurring purchasing power risk. Fixed-income investments can help provide reliable income streams, but you also need to consider investments with growth potential to help work toward your long-term goals.

Interest-rate risk — Bonds and other fixed-income investments are subject to interest-rate risk. If you own a bond that pays 4 percent interest, and newly issued bonds pay 5 percent, it would be difficult to sell your bond for full price. So if you wanted to sell it prior to maturity, you might have to offer it at a discount to the original price. However, if you hold your bonds to maturity, you can expect to receive return of your principal provided the bond does not default.

Default risk — Bonds, along with some more complex investments, such as options, are subject to default risk. If a company issues a bond that you’ve bought and that company runs into severe financial difficulties, or even goes bankrupt, it may default on its bonds, leaving you holding the bag. You can help protect against this risk by sticking with “investment-grade” bonds — those that receive high ratings from independent rating agencies such as Standard & Poor’s or Moody’s.

Liquidity risk — Some investments, like real estate, are harder to sell than others. Thus, real estate is considered more “illiquid” than many common investments.

Make sure you understand what type of risk is associated with every investment you own. And try to avoid “overloading” your portfolio with too many investments with the same type of risks. Doing so will not result in a totally smooth journey through the investment world — but it may help eliminate some of the “bumps” along the way.

This article was written by Edward Jones for use by Laura Evans, Edward Jones financial adviser of Richmond Hill.

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Record April boosts Savannah's container trade at port
GardenCityTerminal
The Port of Savannah moved 356,700 20-foot equivalent container units in April, an increase of 7.1 percent. - photo by Provided

The Georgia Ports Authority's busiest April ever pushed its fiscal year-to-date totals to more than 3.4 million 20-foot equivalent container units (TEUs), an increase of 8.8 percent, or 280,000 TEUs, compared to the first 10 months of fiscal 2017.

"We're on track to move more than 300,000 TEUs in every month of the fiscal year, which will be a first for the authority," said GPA Executive Director Griff Lynch. "We're also anticipating this to be the first fiscal year for the Port of Savannah to handle more than 4 million TEUs."

April volumes reached 356,700 20-foot equivalent container units, up 7.1 percent or 23,700 units. As the fastest growing containerport in the nation, the Port of Savannah has achieved a compound annual growth rate of more than 5 percent a year over the past decade.

"As reported in the recent economic impact study by UGA's Terry College of Business, trade through Georgia's deepwater ports translates into jobs, higher incomes and greater productivity," said GPA Board Chairman Jimmy Allgood. "In every region of Georgia, employers rely on the ports of Savannah and Brunswick to help them become more competitive on the global stage."

To strengthen the Port of Savannah's ability to support the state's future economic growth, the GPA Board approved $66 million in terminal upgrades, including $24 million for the purchase of 10 additional rubber-tired gantry cranes.  

"The authority is committed to building additional capacity ahead of demand to ensure the Port of Savannah remains a trusted link in the supply chain serving Georgia and the Southeast," Lynch said.

The crane purchase will bring the fleet at Garden City Terminal to 156 RTGs. The new cranes will support three new container rows, which the board approved in March. The additional container rows will increase annual capacity at the Port of Savannah by 150,000 TEUs.

The RTGs will work over stacks that are five containers high and six deep, with a truck lane running alongside the stacks. Capable of running on electricity, the cranes will have a lift capacity of 50 metric tons.

The cranes will arrive in two batches of five in the first and second quarters of calendar year 2019.

 Also at Monday's meeting, the GPA Board elected its officers, with Jimmy Allgood as chairman, Will McKnight taking the position of vice chairman and Joel Wooten elected as the next secretary/treasurer.

For more information, visit gaports.com, or contact GPA Senior Director of Corporate Communications Robert Morris at (912) 964-3855 or rmorris@gaports.com.

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