Sentences with phrase «effective hedge»
An effective hedge refers to a strategy or action taken to reduce or lessen the potential risk or negative impact of an investment or business decision. It helps to protect against losses by providing a protective layer or buffer in case the original investment does not perform as expected. Full definition
As a result, typical duration - heavy bond funds may not provide as effective a hedge against equity risk as they used to.
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As a result, typical duration - heavy bond funds may not provide as effective a hedge against equity risk as they used to.
Furthermore, if rising rates are primarily a function of higher real rates, rather than higher inflation expectations, gold may also be a less effective hedge.
As a general rule, Resource stocks provide the most effective hedge against inflation because they gain directly from the rising prices of the commodities they produce.
Should that occur, bonds will not be as effective a hedge against equity risk.
Should that occur, bonds will not be as effective a hedge against equity risk.
Furthermore, if rising rates are primarily a function of higher real rates, rather than higher inflation expectations, gold may also be a less effective hedge.
The company estimates unfavourable exchange rates impacted sales by $ 14.4 million over the 2010 - 11 financial year, but said in its recent results it was putting more effective hedging strategies in place to minimise impact.
The Canadian market is a more effective hedge against inflationary pressures, which is why Canada always outperforms the U.S. late in the cycle
These offer market participants effective hedging tools against foreign exchange risk.
The DRS combines volatility capture, long exposure to the market via ETFs, and effective hedging techniques in a single strategy designed to provide consistent returns throughout rising, declining, or flat markets without any dependency on fixed income or interest rates.
Nursing Informatics Resume Objective 5: As a nursing informatics professional, I consider myself as effective strategist who blends technical acumen and nursing education to develop effective hedging and growth oriented career, while ensuring success and growth for my organization as well.
In a reflationary environment, bonds are likely to be a less effective hedge against equity risk.
In a reflationary environment, bonds are likely to be a less effective hedge against equity risk.
We view hotels as the real estate sector that stands to gain the most from the tax cut and as an effective hedge against the downside risks related to the tax cut.
«One of the reasons to own cryptocurrencies is because they are an effective hedge,» said Sam Doctor, a data analyst at New York - based Fundstrat, a research firm whose founder is a well - known bitcoin bull predicting large rises this year.
Investors looking for effective hedges have to look beyond traditional havens such as bonds, the yen and gold.
But there is another reason to maintain a position in gold: Historically, it has been a cheap and effective hedge against equity volatility.
A large part of the reason has been that bonds have provided an effective hedge against equity risk.
As I discussed in a previous blog, if correlations between stocks and bonds remain negative, as they have for most of the post-crisis period, bonds remain an effective hedge of equity risk.
U.S. Treasuries can be an effective hedge during such episodes, we find.
With security issues surrounding cryptocurrencies still not fully rectified, their capability as an effective hedge is compromised.
The implication is that long - term bonds, which may not offer much income, can help provide an effective hedge in equity - heavy portfolios.
Futures contracts may not provide an effective hedge of the underlying securities because changes in the prices of futures contracts may not track those of the securities they are intended to hedge.
Futures contract positions may not provide an effective hedge because changes in futures contract prices may not track those of the securities they are intended to hedge.
It seems that more and more people justify investing in cryptocurrencies — even at current record prices — by claiming that they're an effective hedge against the instability of fiat currencies.
Many have viewed the product as an effective hedge against Amazon's Kindle.
Many believed XMDF, not EPUB, might become the primary standard and serve as an effective hedge against the influx of foreign platforms and devices.
A large part of the reason has been that bonds have provided an effective hedge against equity risk.
U.S. Treasuries can be an effective hedge during such episodes, we find.
The implication is that long - term bonds, which may not offer much income, can help provide an effective hedge in equity - heavy portfolios.
That seems too similar to how my mutual funds operate and doesn't seem like it would be an effective hedge.
And, for the rest of your assets, maintaining exposure to equity markets and investing in inflation - linked bonds, such as TIPS or I - Bonds, can provide an effective hedge.
Since 1970, the price of gold has consistently grown at a rate that comfortably beats the rate of inflation, proving an effective hedge during periods of high price growth, according to a recent blog post by State Street Global Advisors» exchange - traded fund specialist, Robin Tsui, and its head of gold strategy, George Milling - Stanley.
for much of it's history, it hasn't even been an effective hedge against inflation.
The mark - to market gain or loss arising out of the effective hedge would be solely taken care of by the respective fund only.