Sentences with phrase «against stock risk»

Provide a wide range of asset classes (excluding equities) that, historically, have little to no correlation with equities; thus, one is able to hedge against stock risk without relying on a single asset, leverage, shorting or inverse products.

Not exact matches

Myriad factors, however, conspire against diamond stocks being low - risk investments.

But Glencore, under London Stock Exchange reporting obligations, said it would only contribute 300 million euros in equity (taking a tiny equity interest of 0.54 %, and even that only «indirectly»), while the rest of the money was provided by «QIA and by non-recourse bank financing,» the latter being a loan that effectively insulates Glencore against most of the risks of owning Rosneft shares.

The four conglomerates originated in different sectors, but their underlying business model is the same: cultivate powerful allies in the Communist Party; use those relationships to win regulatory and property concessions; gather investment from friends, family and other proxies of party elites into a murky, unregulated private holding company; borrow heavily from state - owed banks and other sources to finance prodigious growth plans; invest as aggressively as possible in stock and property overseas as a hedge against slower growth in China and the risk of a weaker Chinese currency.

Stock valuations will need to be watched closely in the medium term as we remain vigilant against a buildup of financial stability risks.

Finally, you have the nerve to say, «Unless you believe the SEC (or FTC) will reverse its position and take concrete action against HLF, there is very little downside risk to this stock.»

«Annuities are [better than stocks] for protecting against longevity risk and investment volatility.»

Actual results may vary materially from those expressed or implied by forward - looking statements based on a number of factors, including, without limitation: (1) risks related to the consummation of the Merger, including the risks that (a) the Merger may not be consummated within the anticipated time period, or at all, (b) the parties may fail to obtain shareholder approval of the Merger Agreement, (c) the parties may fail to secure the termination or expiration of any waiting period applicable under the HSR Act, (d) other conditions to the consummation of the Merger under the Merger Agreement may not be satisfied, (e) all or part of Arby's financing may not become available, and (f) the significant limitations on remedies contained in the Merger Agreement may limit or entirely prevent BWW from specifically enforcing Arby's obligations under the Merger Agreement or recovering damages for any breach by Arby's; (2) the effects that any termination of the Merger Agreement may have on BWW or its business, including the risks that (a) BWW's stock price may decline significantly if the Merger is not completed, (b) the Merger Agreement may be terminated in circumstances requiring BWW to pay Arby's a termination fee of $ 74 million, or (c) the circumstances of the termination, including the possible imposition of a 12 - month tail period during which the termination fee could be payable upon certain subsequent transactions, may have a chilling effect on alternatives to the Merger; (3) the effects that the announcement or pendency of the Merger may have on BWW and its business, including the risks that as a result (a) BWW's business, operating results or stock price may suffer, (b) BWW's current plans and operations may be disrupted, (c) BWW's ability to retain or recruit key employees may be adversely affected, (d) BWW's business relationships (including, customers, franchisees and suppliers) may be adversely affected, or (e) BWW's management's or employees» attention may be diverted from other important matters; (4) the effect of limitations that the Merger Agreement places on BWW's ability to operate its business, return capital to shareholders or engage in alternative transactions; (5) the nature, cost and outcome of pending and future litigation and other legal proceedings, including any such proceedings related to the Merger and instituted against BWW and others; (6) the risk that the Merger and related transactions may involve unexpected costs, liabilities or delays; (7) other economic, business, competitive, legal, regulatory, and / or tax factors; and (8) other factors described under the heading «Risk Factors» in Part I, Item 1A of BWW's Annual Report on Form 10 - K for the fiscal year ended December 25, 2016, as updated or supplemented by subsequent reports that BWW has filed or files with the risk that the Merger and related transactions may involve unexpected costs, liabilities or delays; (7) other economic, business, competitive, legal, regulatory, and / or tax factors; and (8) other factors described under the heading «Risk Factors» in Part I, Item 1A of BWW's Annual Report on Form 10 - K for the fiscal year ended December 25, 2016, as updated or supplemented by subsequent reports that BWW has filed or files with the Risk Factors» in Part I, Item 1A of BWW's Annual Report on Form 10 - K for the fiscal year ended December 25, 2016, as updated or supplemented by subsequent reports that BWW has filed or files with the SEC.

«The desire to spread stock picking risks over a number of different securities must be balanced against the negative impacts of spreading research resources so thin that an intimate understanding of a company or industry is lost.

So one does prefer to manage cyclical risks within a secular uptrend, as opposed to what we've had to do in stocks over the past decade, which is to manage cyclical risks against a very poor secular background.

Options can help you protect against risk, generate income, increase profits, lower your breakeven point, reverse your strategy without selling your stock, and even potentially let you set a purchase price for a stock below its current market price.

The risk of shorting a single stock, bad as it might be, is that it can be bought out by a bigger company and as a result the stock price will move against you.

As stocks soar and the risk of a correction grows, it makes sense to add more cash to your portfolio to hedge against a possible downturn.

While the underperformance of high yield bonds since my post The Case Against High Yield has certainly made high yield bonds more attractive (yields went from sub 6 % to north of 8 %), I still prefer the risk / return profile of a stock / bond allocation (more here).

Called a «rising equity glide path,» retirement experts Wade Pfau and Michael Kitces state that this strategy can help protect against the risk of running out of money, particularly when stock market returns are poor early in retirement.3

The bills include «extreme risk» protective orders against people who have guns, a ban on bump stocks and an expansion of background checks.

As a result of the different securities available in the stock market, stock market provides you opportunity to guide against risks through the allocation of your funds across different securities.

Complementing traditional investments, Ross points out that real estate is less volatile (unlike stocks, it's not marked to market every day); provides diversification with a favorable balance of risk versus return; is favorably taxed via capital gains tax treatment and interest deductibility; generates returns similar to the stock market and «often more»; provides principal protection; a hedge against inflation and a pension - like «monthly coupon.»

Gold is often used a hedge against stock market uncertainty and when there are perceived geopolitical risks that are impacting on market valuation and investors outlook.

Not only does this mark a new era of investment alternatives from traditional assets like stocks and bonds for investors to use in order to protect against portfolio risks but as investors allocate to commodities in local Asian markets, the futures growth may help standardize the quality of energy and food to make prices less volatile and their environment cleaner.

It has held up in times of inflation and may hedge against other risks like geopolitical risk that hurts stocks.

Such an emphasis on stocks also protects better against inflation risk.

Against this economic backdrop, we believe developed market stocks will advance and investors will be rewarded for moving up the risk spectrum into equities, credit and alternative asset classes.

There are various hedging strategies available, many of them using inverse ETFs or ETNs (exchange - traded notes), which let you participate in the hope of stock gains while also hedging some of your portfolio against downside risk.

Also, this is as good a time as any to take inventory of your risk tolerance and balance that against what is going on in the stock market.

Liquid Alternatives are simply hedge fund strategies wrapped in a mutual fund format... From a practical standpoint, investors should view these strategies as a way to diversify either bond or stock holdings in order to provide non-correlated returns to their investment portfolios, cushion portfolios against downside risks, and improve risk - adjusted returns.

In my small unique book «The small stock trader» I also had more detailed overview of tens of stock trading mistakes (http://thesmallstocktrader.wordpress.com/2012/06/25/stock-day-trading-mistakessinceserrors-that-cause-90-of-stock-traders-lose-money/): • EGO (thinking you are a walking think tank, not accepting and learning from you mistakes, etc.) • Lack of passion and entering into stock trading with unrealistic expectations about the learning time and performance, without realizing that it often takes 4 - 5 years to learn how it works and that even +50 % annual performance in the long run is very good • Poor self - esteem / self - knowledge • Lack of focus • Not working ward enough and treating your stock trading as a hobby instead of a small business • Lack of knowledge and experience • Trying to imitate others instead of developing your unique stock trading philosophy that suits best to your personality • Listening to others instead of doing your own research • Lack of recordkeeping • Overanalyzing and overcomplicating things (Zen - like simplicity is the key) • Lack of flexibility to adapt to the always / quick - changing stock market • Lack of patience to learn stock trading properly, wait to enter into the positions and let the winners run (inpatience results in overtrading, which in turn results in high transaction costs) • Lack of stock trading plan that defines your goals, entry / exit points, etc. • Lack of risk management rules on stop losses, position sizing, leverage, diversification, etc. • Lack of discipline to stick to your stock trading plan and risk management rules • Getting emotional (fear, greed, hope, revenge, regret, bragging, getting overconfident after big wins, sheep - like crowd - following behavior, etc.) • Not knowing and understanding the competition • Not knowing the catalysts that trigger stock price changes • Averaging down (adding to losers instead of adding to winners) • Putting your stock trading capital in 1 - 2 or more than 6 - 7 stocks instead of diversifying into about 5 stocks • Bottom / top fishing • Not understanding the specifics of short selling • Missing this market / industry / stock connection, the big picture, and only focusing on the specific stocks • Trying to predict the market / economy instead of just listening to it and going against the trend instead of following it

This is true in that they are diversifying against company - specific risk, but such a portfolio is not diversified against the systematic behavior of U.S. large - cap stocks.

² Likewise, the investor who wanted to be protected against purchasing power risk would be 100 % stocks since corporations earn cash flows by selling goods and services at a mark - up over the cost of production.

A paper titled Betting Against Beta shows that low - risk assets outperform their betas for U.S. stocks, 20 international markets, the Treasury bond market, the corporate bond market, and the futures markets.

Some managers invest the proceeds from their short positions in low - risk assets, while others dedicate a portion to long stock positions in order to hedge against broad market rallies.

Owning common stock of active businesses is your best hedge against interest rate risk.

For example, an investor might purchase a put option (the right to sell a stock at a set price) to hedge against the risk of a stock they own moving sharply down.

Meanwhile, bonds are serving as a form of insurance against the downside risk of stocks.

To guard against true inflation risks (rapid and unexpected swings in inflation rates), we need to look at the history of inflation versus stock, bond, and cash returns.

Vernon writes, «Social Security benefits are a near - perfect retirement income generator, protecting you against several risks of living a long time: inflation, stock market crashes and cognitive decline.

Fortunately, there's plenty of stock selection filters you can employ — for example, to help protect against the risks posed by home bias, bottom - up stock picking, and / or a concentrated portfolio.

For each stock, that's an exercise in assessing upside potential (i.e. current share price vs. your latest estimate of intrinsic value), and then weighing that reward against the level & range of risk (s) involved.

While convertible securities tend to provide higher yields than common stocks, the higher yield may not protect against the risk of loss or mitigate any loss associated with a convertible security's price decline.

By examining the various ways that options can be used to hedge against risk, hopefully I've helped you get a better understanding of how trading stock options can be a useful part of your portfolio!

But held in tandem with bonds, they can offer a way to hedge against interest - rate risk and might cushion part of a portfolio against stock - market volatility

Timothy Baker, a CFP and CEO of WealthShape, guards against country - specific risk by urging clients to expand their investments to include international stock funds.

Portfolio Insurance is a method of hedging a portfolio of stocks against the market risk by short selling stock index futures.

When you hold a particularly risky stock (one that can quickly swing high or low in price) or during times when the stock market as a whole is experiencing a lot of volatility, put options can act as insurance against downside risk.

On the other hand, extremely high quality blue - chip dividend paying stocks such as found on David Fish's lists of Champions, Contenders and Challengers or the Standard & Poor's Dividend Aristocrats, have historically at least, provided a high level of protection against income risk.

The position amounts to less than 1 % of assets, and most of the day - to - day fluctuation in the Fund tends to be attributable to differences in the performance of the stocks held by the Fund and the indices we use to hedge, but we expect the higher - strike put options to fortify our defense against the risk of indiscriminate selling should the market encounter more than a moderate amount of weakness.

It's very feasible for an institutional manager who is a «stock picker» by nature to short a sector ETF to manage risk against his long holdings, making himself in essence «delta neutral.»

You can then sell near - term calls against your position and target returns close to 10 %, with risk far lower than a general stock portfolio.

Many investment organizations benchmark their funds» performance against the classic 60/40 mix of domestic stocks and bonds, but this posture limits their ability to earn superior risk - adjusted returns.

It doesn't «work» to protect investors exposed to stock market risk against losses in all market conditions.