Sentences with phrase «accept market risk when»

In my view, the necessary objective is to accept market risk when the likely return / risk profile is attractive, based on observable measures of valuation and market action, and to avoid, hedge, or diversify away those risks that don't carry attractive return / risk profiles on average.

Not exact matches

It is impossible to be a successful equity investor without the willingness to accept some amount of market risk when conditions appear frightening.

Even if we observe rich valuations, there can be some justification for accepting market risk during periods when market internals are uniformly strong, provided that the environment is not also characterized by a syndrome of overbought, overbullish and rising - interest rate conditions.

Some experts contend that investors» appetite for risk tracks the market — that is, investors are more willing to accept risk when the market's going up, less so when it's headed down.

But I don't fully accept that investing in the stock market = «taking risk» — Just as long as you don't buy when history says you shouldn't.