Sentences with phrase «risky assets investors»

While the bond market continues to foreshadow a very weak economic recovery risky asset investors can't get enough.

Not exact matches

More specifically, investors have sought the potential for higher returns from riskier assets like private company stocks, as safer investments like T - bills and bonds pay out next to nothing.
European markets closed marginally higher on Tuesday as tensions between the U.S. and North Korea showed signs of subsiding, prompting investors to return to riskier assets.
Older investors may want to move that money into assets that are even less risky, like cash or annuities.
Assets such as gold and U.S. Treasurys — considered less risky options by many investors — rallied immediately after the president's comments.
Asian shares edged higher on Friday, turning positive for the year, while the US dollar weakened broadly after the Federal Reserve's cautious stance on further rate increases prompted investors to rebuild their bets on riskier assets.
Benchmark spot gold prices were on course for an over 1 percent decline this week, pressured by a thaw in tensions on the Korean peninsula and a stronger dollar as investors looked to riskier assets such as equities.
But taking out debt to buy an asset as volatile as Bitcoin — as some investors seem to be doing with their credit cards — is risky on a personal finance level.
In this case, emerging markets have suffered the most as investors fled risky assets for the safety of U.S. government treasuries.
NEW YORK U.S. stocks ended mixed on Wednesday while most other global shares rose, as investors were drawn to riskier assets because of upbeat earnings from companies in Europe and the United States.
While the real deal may lead to LP defaults (and another outcome we discussed here), deteriorating perceptions alone can spur investors to preemptively batten down the hatches and shift funds into less risky assets.
While investors are often concerned about catastrophic risks, failing to allocate enough to risky assets can lead investors to «fail slowly» by not maintaining pace with inflation or supporting withdrawal rates.
I suspect that many investors sold their risky assets especially in the financial sector and mitigated into these companies.
These companies allow investors to make riskier investments but say they play no role in vetting the actual assets.
Somehow, we have concluded that unaccredited investors should be able to likely lose their hard - earned money by investing in the most risky of asset classes.
Young investors or investors with long time frames should hold a higher proportion of stocks or risky assets than older investors or investors with short time frames.
Longer time horizons mean investors can benefit from higher returns of riskier assets like stocks, while weathering short - term volatility.
As global investors continue to reprice expectations for structural reforms in the US and Europe, capital will continue to migrate into growth assets and safe - haven investments as an alternative to markets perceived as riskier.
This very low market volatility can lead investors to take on more risk, and in a period of still relatively low interest rates, to «reach for yield» — that is, buy riskier assets than one would otherwise, in order to achieve a desired profit or savings goal.
With fears fading over U.S. military intervention in Syria, investors who had sought shelter in Treasurys switched back into risky assets.
Rising U.S. debt supply and the pace of the U.S. Federal Reserve's tightening, the possibility the European Central Bank's quantitative easing program is heading towards the finish line, and concerns about the credit quality of riskier asset classes restrained investors.
The endgame was to force investors into riskier assets, [e.g. junk bonds, equities, real estate], create a wealth effect, and stimulate the economy.
Losses in risky assets will dissipate investor confidence, undermine economic activity, and leave the Fed with little choice other than to step on the accelerator for more easy money.
After all, the cornerstone of coordinated central - bank policy since 2008 has been the levitation of financial assets via Zero Interest - Rate Policy (ZIRP) and Quantitative Easing (QE) by forcing investors into risky assets.
Correlation relates to the fact that a low volatility environment encourages investors to move into riskier assets to get decent returns on their investments.
David agrees that low interest rates push investors to riskier assets but also insists that it is one of the points of having an expansionary monetary policy.
Given term premium suppression (via QE) reduced volatility and induced investors to buy risky assets to boost returns, a sustained rise in long - term interest rates would give investors more options to achieve yield targets, thus making risk assets appear less attractive and ultimately erode demands for yield and tighten financial conditions.
Investors delved into riskier assets a day after China's National Bureau of Statistics reported that factory output increased...
Central bank intervention in global bond markets has «crowded out» many traditional fixed income investors, driving them to seek yield and income from non-traditional and riskier asset classes such as high yield, emerging markets debt, leveraged loans and private credit.
A lack of lower - risk income sources since the financial crisis forced investors toward riskier assets, raising the demand for these assets amid relatively fixed supply.
This means investors who want higher returns must consider taking on greater risk — by increasing leverage or moving into riskier asset classes.
There are some tentative signs that investors have been scaling back their exposure to relatively risky assets (Graph 18).
Historically, over long periods of time, money invested in riskier assets such as stocks has generally rewarded investors with higher returns than funds invested in ultra safe and liquid assets.
Seth Carpenter, Selva Demiralp, Jane Ihrig and Elizabeth Klee find that some categories of investors appear to sell U.S. Treasuries to the Federal Reserve and rebalance toward riskier assets (corporate bonds, commercial paper, and municipal debt).
Here and now, it's very true that the S&P 500 is a risky asset, but it's madness to imagine that adding more of it to a portfolio will increase expected return, except for investors with very long horizons.
Although recently rising prices for stocks, high - yield bonds, commodities and other riskier assets would suggest otherwise, investors remain skittish over the still unresolved and quite concerning risks facing financial markets, such as the U.S. presidential election, the potentially prolonged post-Brexit renegotiations, Italian bank solvency and a slowing China.
With 10 - year Treasuries yielding less than 2 % today (from Bloomberg data), investors unwilling to accept such low income may need to direct their investments across riskier assets in the search for yield.
Indeed, history has shown that when prices for risk - free assets (like Treasuries) fall to attractive levels, investors often sell their risky assets and purchase Treasuries.
Investors increase risk exposure for potential return, adding exposure to EM equities and other risky assets.
The low interest rate environment makes it difficult for savers to meet their return ambitions without stepping out of deposits and becoming investors in riskier assets.
Investors tend to be trend followers, so yes, as redemptions pile up at hedge funds, risky assets will get liquidated.
When reading «The Intelligent Investor» they claim that you can increase you position to 100 % stocks (risky) if you meet a number of criteria, one of which is liquid assets to pay for living expenses for 1 year.
However, the high correlation between risky assets experienced recently like during the recession of 2001 - 2003 and the global financial crisis in 2007 - 2009 has caused many investors to reconsider allocating by traditional asset classes defined by security type like stocks, bonds and real estate or commodities.
In financial theory, riskier investments are expected to be more profitable because investments normally offer a reward in exchange of risk absorption — if they offered no reward, investors would buy the less - risky assets instead.
A continuing low interest rate policy of the Federal Reserve that encourages investors to seek higher returns in riskier assets.
That might help explain why investors - though not avoiding risky assets altogether - seem to be turning more selective.
Young investors or investors with long time frames should hold a higher proportion of stocks or risky assets than older investors or investors with short time frames.
So investors may be reconsidering what to pay for risky assets.
However, I'm concerned when people tell investors they «need to invest more in assets that are riskier
Markets are experiencing an intense case of risk off sentiment, as investors flee from riskier assets in pursuit of safe havens.
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