Sentences with phrase «longer time horizons mean»

Longer time horizons mean investors can benefit from higher returns of riskier assets like stocks, while weathering short - term volatility.

Not exact matches

Risk is one reason there's such emphasis on investing when you're young — young people have a long time horizon before retirement, which means they can worry less about short - term volatility.

It could also mean having a longer time horizon than other investors, or even a better reputation.

Our investment strategy is meant for medium - to - long - term investments of at least a 3 - 5 year time horizon.

A moderately aggressive portfolio is meant for individuals with a longer time horizon and an average risk tolerance.

What it means is again getting back to your allocation you should only own stocks with money that you have a long time horizon that you can afford to temporarily suffer declines because while stocks do suffer those declines on a regular basis.

Hi John - thank you again for your recent response to my earlier letter... I believe I read somewhere on the site that you are a retired engineer, so let me speak for a second in math terms... more of a hypothesis than anything empirical yet, but it SEEMS to me that the partial derivative of the «ideal» stock allocation (let's assume for now this means the equity allocation that maximizes the SWR) with respect to changes in PE10 is less sensitive to changes in PE10 the longer your time horizon and / or the higher your target terminal balance....

Time - arbitrage is a term that is used in a variety of contexts, but with investing it's a term that basically means having a longer time horizon that most other peoTime - arbitrage is a term that is used in a variety of contexts, but with investing it's a term that basically means having a longer time horizon that most other peotime horizon that most other people.

Thinking about price momentum and mean - reversion are also lesser matters, because if your time horizon is a long one, the initial results will have a modest effect on the ultimate results.

Paragraph 2: First, rebalancing is almost always a good idea, but it presumes the asset classes / subclasses in question is high quality enough that it will mean - revert, and that your time horizon is long enough to benefit from the mean reversion when it happens.

We remain convinced that mean reversion will prevail over a long time horizon and that rebalancing will generate higher future returns.

Because my time horizon is long, day - to - day fluctuations don't mean much.

An article in the latest issue of The Economist explores whether acknowledgement that some fossil fuel stocks are unburnable means companies with big coal or oil reserves are overvalued, at least on long time horizons.

-- since these models have no predictive skill on a 1 yr time horizon, which means we can't run normal stats on them, and the mean drifts don't match reality over the long term, what good are the models -(seriously?)

This means that net effects depend crucially on the time horizon you care about (and the longer the time horizon the more important the direct CO2 effect is).