Not exact matches
Former Fed Governor Stein highlighted that Federal Reserve's monetary policy transmission mechanism works through the «recruitment channel,» in such way that investors are «enlisted» to achieve central bank objectives by taking
higher credit
risks, or to rebalance portfolio by
buying longer - term bonds (thus taking on
higher duration
risk) to seek
higher yield when faced with diminished returns from safe
assets.
Last month the European Central Bank vice president said Bitcoin was a «speculative
asset» where investors were «taking that
risk of
buying at such
high prices».
If we can avoid capital losses in the near term and then
buy investment - worthy
assets after they have dropped in price and offer much less capital
risk and much
higher income yields again, then there is hope for
higher compound returns for many years thereafter.
This may not sound «right,» but it enforces a «
buy low», «sell
high» philosophy, all while maintaining your
asset allocation and
risk level.
Because the prices on
risk assets are
high, and smart investors lighten the boat as the envious
buy into momentum at the end of a doomed rally.
Better than Expected GDP Could Support Demand for
Higher Risk Assets U.S. stock indices may see fresh
buying today if GDP exceeds todayâ $ ™ s consensus estimate of 4.5 %.
As the Dollar fell, traders
bought up stocks as demand for
higher risk assets picked up.
As the Dollar fell, traders
bought up stocks as demand for
higher risk assets picked up steam.
Lower demand for
higher risk assets was the theme today as traders took profits and failed to
buy on the dips.
More literate households hold riskier positions when expected returns are
higher, they more actively rebalance their portfolios and do so in a way that holds their
risk exposure relatively constant over time, and they are more likely to
buy assets that provide
higher returns than the
assets that they sell.
The rules based method of these fund naturally picks up different
asset classes while staying focused on
risk, rebalances toward lower
risk /
higher returns, while selling
high and
buying low.
The thread was launched to explore research by Wade Pfau (Associate Professor of Economics at the National Graduate Institute for Policy Studies in Tokyo, Japan) showing that Valuation - Informed Indexing beat
Buy - and - Hold in 102 of the 110 rolling 30 - year time - periods now in the historical record and that long - term timing provides comparable
risk and the same average
asset allocation as a 50/50 fixed allocation strategy but with much
higher returns.
This is called rebalancing, and you're free to do it as often as you wish, as a lot of the great returns and low
risk due to using
asset allocation comes from this forced «selling
high» and «
buying low» process.
Vitor Constancio said developments in bitcoin's price make it «a speculative
asset by definition,» adding, «Investors are taking that
risk of
buying at such
high prices.»