Not surprisingly, pundits are touting
the asset side of the equation as they always do during market highs, but remember asset prices can move in both directions while debt remains a constant.
«I usually irritate people when I talk about [how] the liability side of the equation is more important than
the asset side of the equation for retirees,» Falk said.
This is driving many to consider new approaches and new exposures, particularly on the risk -
asset side of the equation.
Not exact matches
If you have student loans right out
of school, or a negative net worth due to negative equity, use these charts for the
asset side of the balance sheet
equation.
The same sort
of openness comes through from the other
side of the dating
equation as well, with gorgeous girls going the extra mile to make sure their potential suitors are well aware
of their best
assets.
If the debt is at 2 % and the underlying
assets pay 8 %, it creates 6 % more income on the leveraged
side of the
equation.
The quantities on the left - hand
side of this last
equation are sometimes called activa (
Assets and Expenses), and those on the right - hand
side are sometimes called passiva (Capital, Income, and Liabilities).
On the positive
side of the
equation, futures facilitate trading a certain
asset, making it more accessible to investors and the general public alike.
Once income is coming in as it should and economic losses are under control and normalized, this is what the income
side of the
asset's
equation looks like.