Lower quality
assets lose more money.
Not exact matches
While this means they can control a larger amount of
assets with a smaller amount of
money, traders have the ability to
lose more than the value of their
assets and cash.
When borrowing is cheap, firms will take on
more debt to invest in hiring and expansion; consumers will make larger, long - term purchases with cheap credit; and savers will have
more incentive to invest their
money in stocks or other
assets, rather than earn very little — and perhaps
lose money in real terms — through savings accounts.
I'm currently renting and I'm wanting to buy a house in the area to live in (because I want
more space and I want my
money to go into an
asset rather than simply
losing money I'm paying in rent).
Because these
assets are
more unlikely to
lose value, they typically don't make much
money for you.
For example, credit card debt will get you into financial trouble and
lose you
more money permanently than student loans or a mortgage while not providing any future
assets.
In a follow - up article,
More On The Futility Of Groupthink Quant Strategies, And Why Momos Are Guaranteed To
Lose Money Over Time, Zero Hedge provides a link to a Goldman Sachs
Asset Management presentation, Maybe it really is different this time -LRB-.
The main lesson: choose your maturity preference with care for slack balances that you don't want to invest in risk
assets... you get
more yield as you go longer, but the longer bonds
lose money more rapidly for a given rise in interest rates.
You may end up owing
more money than you have, or risk
losing assets such as your home.
Deferred tax
assets rely on the ability to earn
more money, but most companies with the deferred tax
assets have
lost significant
money in the past.
The blessing of our industry's market - timing scandal — the good for our investors blown by that ill wind — is that it has focused the spotlight on that conflict, and on its even
more scandalous manifestations: the level of fund costs, the building of
assets of individual funds to levels at which they can no longer differentiate themselves, and the focus on selling funds that make
money for managers while far too often
losing money — and lots of it — for investors.
Nevertheless, when the total value of crypto
assets increased
more than $ 550 billion last year before
losing over $ 400 billion since New Year's Day, it raises two questions: how big is the IRS bill to be paid and where is the
money coming from?
As investors
lose confidence in central banks and traditional forms of fiat
money, crypto
assets are becoming
more viable.