Sentences with phrase «because equity returns»

Not exact matches

Investors who were underweight on the Canadian market because of negative outlooks on the Canadian dollar, oil and other commodities are returning, says Lesley Marks, senior vice-president and chief investment officer, Fundamental Canadian Equities, at BMO Asset Management.

Because when you actually look at the relationship across sectors, and you look at their valuations based on return on equity, or other measures, all sectors seem to be about fairly valued.

Private equity funds are basically «corporates on steroids» because they can't simply compete and perform the same way any other corporate would because corporates have a lower cost of capital and are able to accept lower returns than a PE firm.

If rules allowed, Fink added, the guy's pension fund should sell all of its bonds «and go 100 % equities» because that's where tomorrow's returns will be made.

Not because it is attractive as a repository for equity capital, but precisely because it is so unattractive, the low - return business must follow a high retention policy.

Banks have been an attractive investment in part because the return on equity has historically been very high — more than 20 % — but that level will be much harder to maintain.

It's going to take longer than that with equity crowdfunding simply because of the due diligence and information sharing that needs to occur when investors are buying a piece of a company and hoping to someday see a financial return.

Most investors shy away from bonds because they yield (or return) less than equities and tend to be more complex in nature.

Software companies usually sell at larger p / e ratios because they have much higher growth rates and earn higher returns on equity, while a textile mill, subject to dismal profit margins and low growth prospects, might trade at a much smaller multiple.

You're right about the main reason, but that's because most people don't understand the purpose of Absolute Return investments is to diversify a portfolio — not act as a substitute for long - only equity exposure (which as you say can be obtained very cheaply)

That would be an 8 % return on equity because $ 800,000 divided by $ 10,000,000 in net worth is 8 %.

While we have to say, and we actually believe, that past performance is no guarantee of future returns, we believe that Woodstock represents our clients» best opportunity to capture that equity - like return into their own accounts rather than negotiate it away in purchasing an investment product, because we believe we have done it.

Equity crowdfunding is an equally high - risk investment strategy and because it's still relatively new, pinning down an average rate of return is difficult.

Managers of big banks claim that they can't fund themselves with more equity and still lend as much as they do now because stock holders require a higher rate of return than lenders do.

For example, because the BlackRock Total Return Fund has a low correlation to the S&P 500, equity risk in a fixed income portfolio has the potential to be reduced through the use of the fund.

Again and again we hear of investors who have not returned to equities since 2009 because of the losses that they suffered in that downturn.

«Because investments pledged via the EB - 5 program can not have any guaranteed rate of return (otherwise the capital invested is not considered «at risk»), from a developer's perspective, terms are greatly preferable to more traditional bank financing and are less dilutive than equity financing.

But when the Global Investment Committee recently published its strategic seven - year forecasts, it only trimmed annualized U.S. equity returns modestly — from 5.3 % to 4.9 % — in part because it does not expect a significant contraction to profit margins.

And, because private equity is illiquid, «you only do it if you can expect outsized returns.»

He returned the favor to Easton, praising him for having the «leadership and the courage... to stand up for fairness and equity in education funding, standing up for fairness and equity in our tax structure because I'm fairly certain that it was not students who made those terrible gambles that caused this economic hardship.»

Back in 2006 the Council of Mortgage Lenders pointed out that a large chunk of recorded first time buyers were really returning from homeownership abroad, or had significant help from their families — who could presumably only help because they had accumulated a lot of housing equity themselves.

With fully two - thirds of its money invested in domestic and foreign stocks, private equity and «absolute return strategies» (i.e., hedge funds), the New York State pension fund has a risky asset allocation profile typical of its counterparts across the country — because chasing risk is its only hope of earning 7 percent a year in a market where the most secure long - term bonds yield barely 2 percent.

Equities are considered to be more of an aggressive type of asset because historically they have produced higher returns, but they have also encountered bigger fluctuations in value.

It is suggested to shift from the funds that are more concentrated on equities and invest more in debt funds because as they are less risky and returns are more or less assured unlike equity funds.

According to the research firm Dalbar, equities returned 8.2 % annually over the last 20 years, but typical equity mutual fund investors earned barely 3 % because they jump in and out at the wrong times.

I have no view on the direction of currency movements, but I do prefer unhedged equity ETFs, because currency diversification can lower the volatility of a portfolio, and the cost of hedging is a long - term drag on returns.

This provides your RESP with good growth in the early years, even if returns fluctuate because of the higher equity component.

The whole purpose of having most of the assets invested in equity, domestic plus international, is to catch the growth of equity at the early stage of the portfolio because over the long - term, equities have been proven to provide higher returns than fixed - income securities.

On surface, this may cause concerns to some investors if the fund is only judged by its return because OAKBX could appear to be lagging S&P 500 Index due to the value approach and the large investment in fixed income equities.

ELSS being an equity mutual fund is suitable for long term because equities tend to provide good returns in long term and are highly volatile in short term.

Thanks for prompt response Vipin My goal is to distribute my Debt portfolio from Bank FDs Debt funds are as good as FD but with TAX benefit I beleive because of the small equity component (0 % to 30 %) in Aggresive MIPs they can offer a good return in debt portfolio with low risk which makes it better than Balanced Equity Funds and Debt Funds on eiher side of investments Hence I believe along with Bank FDs, Debt Mutual Funds a person should also diverisfy and invest in Agrresive MIPs as one of the debt instrequity component (0 % to 30 %) in Aggresive MIPs they can offer a good return in debt portfolio with low risk which makes it better than Balanced Equity Funds and Debt Funds on eiher side of investments Hence I believe along with Bank FDs, Debt Mutual Funds a person should also diverisfy and invest in Agrresive MIPs as one of the debt instrEquity Funds and Debt Funds on eiher side of investments Hence I believe along with Bank FDs, Debt Mutual Funds a person should also diverisfy and invest in Agrresive MIPs as one of the debt instruments

For example because a 4 % safe withdrawal rate typically assumes a 60 % equity allocation there's a sequence of returns risk whose impact depends on your spending (and earning) flexibility.

What I do begrudge is the 8 - page investment «analysis» at the end of the book that says that no one should have been suspicious of an 11 % / year return, because equity funds from many major mutual fund companies earned 11 % / year over the same period.

For me what would work well is to sub-advise wealth managers because I am good at beating the equity market, but I will continue to manage the assets of small investors for best return.

Because of these fascinating qualities, investors in stocks that start with the letter U have enjoyed some of the best equity returns over the last eight years.

Currency risk is welcome on the equity side of your portfolio, because it can lower volatility without decreasing expected returns.

Investors demand a premium on their equity investment return relative to lower risk alternatives because their capital is more jeopardized, which leads to the equity risk premium.

IIRC, in Bersteins «Four Pillars» book, he said that rebalancing every two years provided superior returns, primarily because typically equities provide higher returns, and you allow those returns to work for a longer period prior to protecting the gains through rebalancing.

This is because TWTR believes that reinvesting the cash back into the business can provide a higher return on equity.

When we invest in Equity securities, we generally do it with an investment objective of «long - term», and because they have a potential to give us decent real - rate of return than many other Asset classes.

Because USMV's market - like returns have come with less risk, its risk - adjusted returns (a measure of how much risk is involved in generating a security's return) have been better than 99 % of large - cap domestic equity mutual funds and ETFs since its inception.2

I believe because of the small equity component (0 % to 30 %) in Aggresive MIPs they can offer a good return in debt portfolio with low risk which makes it better than Balanced Equity Funds and Debt Funds on either side of investequity component (0 % to 30 %) in Aggresive MIPs they can offer a good return in debt portfolio with low risk which makes it better than Balanced Equity Funds and Debt Funds on either side of investEquity Funds and Debt Funds on either side of investments.

Returning to Mr. Hibbert, he would appear to share this view: «Given that the starting valuation for equities is now very low, then if those companies can continue to increase their earnings profile I think you will see very strong returns because you will get both capital growth and dividend yield.»

Investors may prefer dividend paying equities because dividends are historically responsible for about half of long - term total stock returns, because dividend payers tend to be established and stable businesses, or because dividend stocks experience lower volatility than non-dividend payers.

Since rising home values are returning lost equity to many homeowners, refinancing can make sense with even a small difference in your interest rate because you might be able to eliminate your private mortgage insurance, says Cunningham.

Extensive research details a return premium associated with corporate profitability, measured by metrics such as operating profitability, return on equity, and return on assets.10 Novy - Marx (2013) suggested that the so - called profitability anomaly (labeled as such because it defies the efficient market hypothesis) results from investors» limited attention, a form of cognitive and behavioral bias.

My return on Canadian equities should be higher than my return on US and International equities because the dividends are not subject to withholding taxes.

Of course, starting valuations always matter and one reason why returns for all equities are so modest is because valuation was sky high at the start of the time period.

I am not surprised that it worked out well for you because the last 4 years have been extremely good for equities (you may want to research your holdings because the average returns for Canadian equities in the past 4 years is more than 20 % and you seem to indicate that you averaged 12 %).

Unfortunately, the equity market returns less than a buy - and - hold investor receives, because people buy and sell at the wrong times.