Investment risks: Will these pay off?

We're not telling you to put $100 on the Oakland A's to win the World Series. (You'd win up to $100,000 if they did.) In fact, we're not even telling you to make the risky bets listed in this article. We're just saying,?these daring investment moves have the potential to pay off handsomely this year.

-Greg Garrison, GBR Newsletter Editor

Risk is by definition an inherent part of investing. Even U.S. government securities like Treasury bills — which are backed by the full faith and credit of the government and are considered the safest investment in the world — carry inflation and interest-rate risk. But speculative investments in?volatile instruments like stocks?can carry much higher levels of risk. In some cases, risk is foolhardy, leading to devastating losses that can be irrecoverable. In other cases, though, risk simply goes hand-in-hand with reward.

Some so-called “risky” moves can actually be the right play if you do your homework, hedge your risks and invest prudently. Just be sure to consult with a financial advisor so you fully understand what your own personal risk tolerance is and how it might weigh on your financial situation as a whole. Read more...