Unless we observe a rather swift improvement in market internals and a further, material easing in credit spreads — neither which would relieve the present overvaluation of the market, but both which would defer our immediate concerns about downside risk — the present moment likely represents the best opportunity to reduce
exposure to stock market risk that investors are likely to encounter in the coming 8 years.
Would that evidence be sufficient to warrant
an exposure to stock market risk?
Not exact matches
Important factors that could cause actual results
to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited
to, the following: 1) our ability
to continue
to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability
to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability
to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability
to achieve certain cost reductions with respect
to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability
to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft; 6) the effect on aircraft demand and build rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft
market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and
markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability
to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence
to their announced schedules; 10) our ability
to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability
to enter into profitable supply arrangements with additional customers; 12) the ability of all parties
to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the
risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability
to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount rate changes on pension obligations; 17) our ability
to borrow additional funds or refinance debt, including our ability
to obtain the debt
to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes
to the interpretations of or guidance related thereto, and the Company's ability
to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability
to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our
exposure under our revolving credit facility
to higher interest payments should interest rates increase substantially; 27) the effectiveness of any interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30)
exposure to potential product liability and warranty claims; 31) our ability
to effectively assess, manage and integrate acquisitions that we pursue, including our ability
to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability
to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes
to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability
to continue selling certain receivables through our supplier financing program; 34) the
risks of doing business internationally, including fluctuations in foreign current exchange rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability
to complete the proposed accelerated
stock repurchase plan, among other things.
«
Market volatility should be a reminder for you
to review your investments regularly and make sure you consider an investing strategy with
exposure to different areas of the
markets — U.S. small and large caps, international
stocks, investment - grade bonds —
to help match the overall
risk in your portfolio
to your personality and goals,» says Dowd.
We still have some
exposure to «basis
risk» - the
risk that our
stocks perform differently than the indices we use
to hedge, but given that both the broad
market and some of our industry group holdings are oversold relative
to the S&P 100, I believe that the some of this potential for basis
risk was reduced by the recent decline.
With the new change
to our
stock market timing model, we want
to continue building our long
exposure as new, low -
risk swing trade setups develop.
Strategic Growth is a
risk - managed growth fund that is intended
to accept
exposure to U.S.
stocks over the full
market cycle, but with smaller periodic losses than a passive buy - and - hold approach.
Most of these portfolios have
exposure to stocks and bonds, which creates the
risk of
market fluctuation — both up and down.
We gradually scale our investment
exposure in proportion
to the average return /
risk profile that
stocks have provided under similar conditions (primarily defined by valuation and
market action).
You might find that you can dial down you
risk — or
exposure to stocks — so that your balance doesn't plummet if the
market drops as you enter retirement.
You benefit from potential long - term growth and
exposure to the broad
stock and bond
markets, while assuming
market risk.
This
risk management move gradually curbs our
exposure to stock market crashes as our time horizon shortens.
After evaluating every
stock in the applicable universe along each factor, an optimized portfolio is formed
to maximize
exposure to the targeted factors with a similar level of
risk to that of the
market.
So if you buy emerging
market stocks and you outperform the S&P 500, that's not alpha, that's
exposure or beta
to the emerging
market risk.
Some investors reduce
exposure to these
risks by allocating only a small percentage of their portfolio
to emerging -
market stocks, relative
to developed -
market stocks.
Most of these portfolios have
exposure to stocks and bonds, which creates the
risk of
market fluctuation — both up and down.
This helps create better alignment between an investor's
risk profile and their
exposure to the financial
markets as opposed
to most indexing strategies which involve a very high correlation
to the
stock market and its inevitable large drawdowns.
We know, however, that the
stock market's
exposure to permanent loss
risk is not static.
The investment manager expects
to hold an unhedged, fully - invested position in common
stocks in environments where the expected return from
market risk is believed
to be high, and may reduce or «hedge» the
exposure of the Fund's
stock portfolio
to the impact of general
market fluctuations in environments where the expected return from
market risk is believed
to be unfavorable.
«
Market volatility should be a reminder for you
to review your investments regularly and make sure you consider an investing strategy with
exposure to different areas of the
markets — U.S. small and large caps, international
stocks, investment - grade bonds —
to help match the overall
risk in your portfolio
to your personality and goals,» says Dowd.
The investment manager expects
to intentionally «leverage» or increase the
stock market exposure of the Fund in environments where the expected return from
market risk is believed
to be high, and may reduce or «hedge» the
exposure of the Fund's
stock portfolio
to the impact of general
market fluctuations in environments where the expected return from
market risk is believed
to be unfavorable.
The author warns, «Portfolio managers who pursue the long - term benefits of
exposure to the momentum factor may place the portfolio's value at
risk when momentum results or
market returns change direction, potentially upending the benefits of a recent positive
exposure to momentum
stocks.»
Investors who add real estate
to their investment portfolios further reduce their
exposure to risk since SFR returns are highly uncorrelated
to the
stock market, according
to Roofstock's new data.
They focus on net fund alphas, meaning after - fee returns in excess of the
risk - free rate, adjusted for
exposures to three kinds of
risk factors well known at the start of the sample period: (1) traditional equity
market, bond
market and credit factors; (2) dynamic
stock size,
stock value,
stock momentum and currency carry factors; and, (3) a volatility factor specified as monthly returns from buying one - month, at ‐ the ‐ money S&P 500 Index calls and puts and holding
to expiration.
Multi-cap Investments include
exposure to all
market caps, including small and medium capitalization («cap»)
stocks that generally have a higher
risk of business failure, lesser liquidity and greater volatility in
market price.
It measures the
exposure of
risk a particular
stock or sector has in relation
to the
market.
As a result, I believe it makes sense
to increase your equity
exposure a little compared
to what you might have done when bonds were more attractive, and
to balance that by choosing conservative
stocks that carry less
risk than the overall
market.
Once you've determined how much
exposure to the
stock market is right for you, consider whether well - selected actively managed funds can reduce the volatility of your portfolio and the
risk of loss.
Used wisely, they can reduce the
risk of your portfolio and allow you
to gain
exposure to the
stock market for a relatively low investment and as such, tap into considerable gain potential.
This is important because the more
exposure you have
to various sectors and
stocks with various
market capitalization's, the lower your overall
risk.
Over time, small - cap
stocks have provided
exposure to a segment of the equity
market that has offered faster growth, good
risk - adjusted returns, and relatively low correlation with larger - cap
stocks and other asset classes.
Implementing Fama's premises, Booth (and retired co-founder Rex Sinquefield) set out
to capture
market returns, while seeking
to enhance those returns through very efficient trading methods and by tilting the
market portfolio toward small companies and value
stocks; Fama's other research (together with Ken French) showed that small and value
stocks delivered compensated
risk exposures — additional returns for the additional
risk taken.
Coping with volatile
stock markets means having
stock exposure that is tailored
to your individual
risk tolerance.
Blue - chip U.S. companies: As a Canadian, a simple way
to gain
exposure in the global
stock market while lowering your
risk is
to invest in U.S.
stocks.
Hartford Multifactor Low Volatility International Equity Index (LLVINX or the «Index») seeks
to address
risks and opportunities within developed (excluding the US) and emerging
market stocks by selecting equity securities exhibiting low volatility and constructing the portfolio in a way that is designed
to improve overall
exposure to value, momentum, quality and size factors.
on the one hand i understand the
risks you describe (sitting on a delisted
stock investment), on the other hand I really like the KWGs strategy (with their focus on B - and C - locations and very frugal criteria when the buy new assets) and the
exposure to the german real estate
market.
Disclosure across
stock exchanges by relevant listed companies of the carbon embedded in their fossil fuel reserves (and potential reserves) would provide
markets and investors with a better indication of
stock exchanges» relative
exposure to future climate - related
market risks.
And while he's got
exposure to the main digital coins, he likens the digital tokens being issued in upcoming ICOs
to small - cap
stocks — high growth potential coupled with high
risk — making them an interesting way
to play the cryptocurrency
markets.