Sentences with phrase «averse investors»

Averse investors are people who do not like or are afraid of taking risks when it comes to investing their money. They prefer safe and low-risk options rather than taking chances for potentially higher returns. Full definition
So, more risk averse investors need a greater percent in fixed assets.
A CD is especially beneficial for a risk - averse investor who is looking to save and will not need funds until the instrument reaches maturity.
Experts say these bonds make sense only for very risk - averse investors with a lot of cash at hand (say upward of Rs 100,000).
However, as far as i've read — a loss averse investor holds on to stocks that are falling to avoid realizing a loss and sells winners too quickly.
So how can risk - averse investors add biotech exposure to their portfolio without having to take individual company risk?
In addition, risk - averse investors require higher expected return if the asset's market - liquidity risk is greater.
This is why rational risk averse investors care very much about the variance of their portfolios.
Both types of bonds are tax exempt and particularly attractive to risk - averse investors due to the high likelihood that the issuers will repay their debts.
As such, bond funds tend to attract risk averse investors.
Their safety and high liquidity make money market funds attractive vehicles for risk - averse investors as well as those wanting a safe place to hold funds between more risky, high - yield investments.
Risk tolerant investors tend to be frustrated by the lower performance of slow boats, while risk averse investors in small fast boats may experience fears and losses (however temporary) that they simply can not tolerate.
Preferred stock is a good alternative for risk - averse investors wanting to buy equities.
What happened: Yields sank and prices rose as risk - averse investors sought the safety of government bonds.
For risk - averse investors relying on income from their portfolios, it's been a yield drought, as certified financial planner Barry Glassman puts it.
Petrobras faces a variety of problems that will likely hold the company back for years and keep risk averse investors away from the story.
Risk - seeking investor preferences allow markets to be tolerant of rich valuations and even bubbles, while a subtle shift to risk - averse investor preferences often signals an impending and catastrophic end to those valuation extremes.
As the network notes, risk - averse investors prefer dividend stocks, which are common in pensions and mutual funds even though they've largely underperformed other market indexes over the past four years.
However, with Welltower trading near all - time highs and many bond - like stocks trading at premium valuation multiples relative to history, short - term, more risk averse investors need to keep in mind the risk of a short to medium - term correction if rates do begin to rise and cause capital outflows for bond - like stocks.
Indeed, when our measures of market internals have been unfavorable (signaling risk - averse investor psychology), the S&P 500 has historically lost value, on average, even during periods of Fed easing, falling interest rates, or interest rates pinned near zero.
They hypothesize that loss averse investors may perceive value stocks as riskier than they truly are, given the stocks» recent underperformance, and may therefore require a higher future return from these investments.
«I realized early on I was somewhat a risk - averse investor when it came to picking individual securities, and never had the confidence that I was able to identify the «winner» fund or the «loser» stock.»
Likewise, risk - averse investors hunting for income opportunities may find the uncorrelated nature of some CEF investments attractive.
Regardless of the preference reason, this strategy may appeal to retirees (who withdraw dividends for living expenses) or risk - averse investors still in capital accumulation mode (who reinvest dividends).
By June, risk - averse investors began selling U.S. high yield bonds as well as U.S. small cap assets.
They were written just after the most recent market top and Marks was commenting on (or lamenting) the return to a less risk - averse investor attitude compared to the rampant panic widespread during financial crisis of 2008/09.
Stephanie Genkin, a New York - based certified financial planner, recommended risk - averse investors maintain an asset allocation that allows them to diversify.
Still, the lure of overnight profits often overrides judgement, leaving otherwise risk - averse investors willing to take a leap of faith in otherwise proven technologies.
But the recent drop in demand for CMBS loan products - the direct result of a scare by risk - averse investors amid an unsettled global economy - has forced the company to reorganize and reduce its staff from 100 to 80 employees.
Synergy A shares offer more risk - averse investors preferential dividends capped at 5 % growth per annum, representing secure, predictable earnings.
MIPs are for those risk averse investors who like to stay somewhere in between the safe - but - unyielding debt funds and the risky - but - yielding equity funds
There is still no clear indication from the Fed on when the interest rates will rise - leaving risk - averse investors with paltry returns on cash and bond holdings.
Because the average risk - averse investor holds the average portfolio asset allocation, this becomes the starting point in determining how a specific individual's portfolio might diverge from that average allocation.
These features make endowment plan more preferable for risk - averse investors as it also provides maturity benefit apart from death benefit offered to the nominee of the policy in case of an eventuality.
Risk - averse investors in search of yield know exactly what they are getting when they plunk down cash for a Walgreen's or CVS drugstore.
MIPs are for those risk averse investors who like to stay somewhere in between the safe zone of debt funds and the risk zone of equity funds.
When it comes to preparing for the long term, women face a «perfect storm» financially: They are paid less than men are on average, typically have more gaps in employment, engage in more part - time employment and are often more risk - averse investors.
But they also give risk - averse investors the stability they crave to balance out the craziness of the moves in the stock market.
Funds with a steady income stream are attracting more risk - averse investors.
One of the scenarios I could see this working is for risk averse investors that need to have 4 - 5 year's worth of spending needs in cash to be able to sleep at night (retirees).
Personally, when faced with the same situation and some uncertainty about Roth IRA vs. 401K, I did what any risk averse investor would do.
I like the flexibility that ETFs offer: stop and limit orders can be beneficial to risk averse investors, and using an ETF for covered call writing provides great diversification for more conservative stock and options investors.
Investing in one of these blue - chip stocks will usually be less stressful for the risk - averse investor.
Bitcoin's amazing performance over the last year now appears to have attracted some very risk - averse investors.
A risk - averse investor would walk away.
Though not a preferred instrument for risk - averse investors, the futures market is extremely liquid and is therefore highly attractive to the more enterprising trader.
Political uncertainty in markets outside the United States has long unnerved risk - averse investors, and we believe such fears are now excessive in today's environment.
«We can compare it to the stock exchange, where risk - averse investors are encouraged not to put all their eggs in one basket and to create a portfolio of different securities instead.
Conversely, securities that lie on the left end of the efficient frontier would be suitable for risk - averse investors.
Since bonds in general are sought after by risk - averse investors (because bonds contain less risk than stocks), IG bonds are typically a good fit for bond investors in terms of risk appetite.

Phrases with «averse investors»

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