Sentences with phrase «against the downside»

In turbulent times for the markets, it's time to focus on protecting against downside risk.

You protect against downside risk when valuations are high.

We view hotels as the real estate sector that stands to gain the most from the tax cut and as an effective hedge against the downside risks related to the tax cut.

We strive to construct a portfolio that can participate when stocks are rising while also providing a measure of protection against downside risk.

The only true buffer against downside risk is proper stock analysis and purchasing an equity at a discount to it's intrinsic value.

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

He is also a believer in guarding against a downside, which is the paradox of his personality.

Protect against the downside too, by having some of your money in other areas such as bonds, fixed annuities or mutual funds.

This story only warns against the downside of the net - net buy - and - hold - forever strategy.

Over time, the cash in the policy's cash portion can grow significantly — especially as the funds are protected against any downside market losses.

The reason he is confident in the classic strategy is that over the past 20 years, nothing has been a better hedge against the downside in equities than investment - grade bonds.

So what we offer above all else is a measure of protection against downside risk.

This unique strategy uses options to participate in market gains, plus hold - to - maturity corporate high - yield fixed income ETFs as a buffer to help protect against downside risk.

Only investors with a high risk tolerance seeking a hedge against downside risk should consider this type of derivative investment.

In addition, recent experience has taught investors the importance of cushioning portfolios against downside risks in order to improve risk - adjusted returns.

This type of fund allows investors to take advantage of long - term growth while hedging against downside movement in the markets.

Yet due to a deterioration of market action in a number of economically sensitive groups, our price trend model indicated that trend uniformity had shifted to an unfavorable condition, and we moved to defend our portfolios more fully against downside risk.»

I think the issue here is whether any amateur fund manager (which I think is what we all are — including those financial advisers who create their own «homegrown» portfolios using trackers and bond funds) can seriously manage a portfolio for income or for growth and control against downside risk (in equities or bonds) as well as a good active management group like Invesco perpetual or M&G.

Both CDS and out - of - money put option can protect investors against downside risk, so they are related while not being mutually replaceable.

NTU assesses equities based on their risk / reward ratio as upside potential needs to always be measured against the downside risk.

Since you would have no ability at all to weigh the upside potential against the downside risk, you would just have to look at long - term numbers to see which is more likely.

Sortino ratio measures the mutual fund performance against the downside deviation.

The remaining 20 % -30 % in cash equivalents continues to provide value as a buffer against downside volatility, as well as serve as a storage place until it is time to acquire assets at more attractive prices.

In a downside scenario, there will be stocks that fall with the general market and there are stocks in the etf basket that are defensive against any downside situation in the market.

He said: «The problem with passive investing — the two I think of in an uncertain market - is you really don't mitigate against the downside through simple index investing; you are exposed to the index good and bad.

While sophisticated hedge fund managers use puts to protect against the downside there are unique rules to understand before diving into put strategies.

Constant proportion portfolio insurance (CPPI) is a trading strategy that allows an investor to maintain an exposure to the upside potential of a risky asset while providing a capital guarantee against downside risk.

This better controls for the portfolio's exposure to permanent loss risk and reduces drawdowns thereby better balancing an asset allocator's portfolio between generating returns and hedging against downside loss.

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.

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.

Liquid alternatives can be a useful addition to any portfolio whether an investor is seeking a leveraged strategy to boost profits, a way to reduce risk and hedge against downside movement, or gain access to other assets like commodities.

From a risk - management perspective, therefore, the asymmetry in the conventional policy toolkit would lead me to expect policy to be tilted somewhat in favor of guarding against downside risks relative to preemptively raising rates to guard against upside risks.

In return for accepting limited profits, he or she receives protection against downside risk, usually a guarantee of at least breaking even each year that interest is earned in terms of the equity index portion of earned interest.

Mid-cap and large - cap stocks provide significant buffers against downside risk, whether by events within or outside the control of management.

Liquid alternatives can be a useful addition for any portfolio whether an investor is seeking a leveraged strategy to boost profits, trying to reduce risk and hedge against downside movement, or trying to gain access to other asset classes like commodities.

Beyond protecting against downside risk for the firm, expense financing represents a far more efficient use of capital by firms than paying out of pocket (see Comparative case study).

Hedging is a way of insuring your portfolio against downside risk by purchasing put options against assets.

His deep - value philosophy can be boiled down to four points: he's looking for high - quality stocks that protect against the downside; he wants businesses where short - term issues have caused investors to abandon the company; he wants to wait until valuations are «out - of - this - world» cheap, and he tries not to pay attention to macro issues like eurozone debt or Chinese growth.

Strategic and tactical sector rotation strategies designed to help advisors participate in the upside while protecting against the downside

In my personal opinion, the emphasis upon taking out insurance against downside risks lies in conflict with the shift to data dependency given long and variable lags of monetary policy impacts on the broader economy which could have counselled front - loading insurance cuts rather than scattering them (if delivering any more at all) in which case precious little insurance has been taken out.

where do you get the most bang for the buck for thinking about this more, either in upside potential or protection against downside?

The fund's stated goal is to generate absolute returns while lowering volatility and protecting itself against downside risk.

A recent McKinsey report cites research that high - net worth investors top focuses are protecting principal, hedging against downside risks, minimizing volatility and generating income.

How many now wish they had thought differently about protecting against downside risk?

The general appeal of equity - indexed annuities is to moderately conservative investors who like having some opportunity to earn a higher investment return than what's available from traditional fixed - rate annuities while still having some protection against downside risk.

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.

Protection against downside risk is a key component of the value investing approach, as the primary investment goal is preservation of capital.