«This is typical of a late cycle expansion which is another reason why multiples will be lower as higher volatility typically demands
a higher equity risk premium.
Not exact matches
For one, investors are going to have to get comfortable taking on more
risk in their
equity portfolios by buying stocks at
higher valuations.
Comments: «In addition to forecasting positive earnings growth this year (which we did not in 2012), we are also using a slightly
higher multiple to reflect the positive impact of heavy central bank intervention on the
equity risk premium.»
Asia and Latin America are not
risk - free, but «there seems to be sense in buying
equities in these regions on similar or lower valuations than their counterparts in the developed world given that dividend growth is likely to be superior, given
higher economic growth potential.»
The general consensus is that buying and holding stocks for the long term tends to work out, and that it makes sense to have
higher risk exposures (think
equities) in your younger years.
In Asia, stocks closed mostly
higher but Chinese bonds and
equities stumbled after the government announced new steps on banking oversight in an «arduous» fight on financial
risks, Reuters reported.
You do not want to put your home at
risk with a home
equity loan nor do you want to run up
high - interest credit card debt or dip into money in your retirement portfolio, which you'll need for your future.
It's a (mostly) short term,
higher risk,
higher reward place to invest cash that has a low correlation with the stock market, but is far more passive than buying and managing properties, has more opportunity for diversification than private placements (minimums of 5 - 10K, rather than 100K), and most of the
equity offerings (and all of the debt offerings) provide monthly or quarterly incomes.
On the other hand, a
high debt - to -
equity ratio translates into
higher risk for shareholders since creditors are always first in line for compensation should the company go bankrupt.
A wobbly
equity market, expectations for
higher interest rates and weaker economic growth in the first quarter have inspired some pundits to claim that bear - market
risk for stocks...
The
higher that stock prices rose, the more people thought that
equities had little
risk.
It demonstrates that a global
equity framework can provide diversification and
higher long - term
risk - adjusted returns for investors from
high growth countries who often hold home - biased
equity portfolios that can have
high concentration
risk.
If you hold your shares in street name, it is critical that you cast your vote if you want it to count in the election of directors, the vote to approve the amendment to our Amended and Restated Certificate of Incorporation, the vote to approve the amendment and restatement of our 2013
Equity Incentive Plan, the advisory vote to approve named executive officer compensation, and the stockholder proposals requesting: (i) the elimination of supermajority voting requirements, (ii) the adoption of a policy to consider employee pay ranges when setting CEO compensation, and (iii) a report on Salesforce's criteria for investing in, operating in and withdrawing from
high -
risk regions (Proposals 1, 2, 3, 5, 6, 7 and 8 in this Proxy Statement).
Bellwether provides only
high quality
equity and fixed income securities that meet investor's long term requirements and
risk tolerance.
These behavioral finance influences can skew a portfolio's overall allocations toward an overemphasis of potentially
higher - yielding
equities that in some instances may represent more downside
risk than upside potential at current valuation levels.
A
equity investment in a
high risk seed or early stage company does not align with the longer term nature of the assets of a registered savings plan.
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.
Why leave money in
equities, and
risk another year of lost opportunity, when fixed income securities seem to be on the road to
higher (and less risky) returns?
«Many participants reported that their contacts had taken the previous month's turbulence in stride, although a few participants suggested that financial developments over the intermeeting period highlighted some downside
risks associated with still -
high valuations for
equities or from market volatility more generally,» the minutes said.
Moreover, a sustained move toward
higher inflation is a
risk to most investors and investment strategies, given that rising inflation has historically been a drag on
equity and bond returns, making diversification beyond mainstream asset classes more critical.
The Wisdom Tree U.S. Dividend Growth Fund (DGRW) is an
equity investment with
higher market
risk that seeks to invest in dividend growth
equities.
The investments are subject to the volatility of the financial markets, including that of
equity and fixed income investments in the U.S. and abroad, and may be subject to
risks associated with investing in
high - yield, small - cap, and foreign securities.
Stuart Freeman is the co-head of global
equity strategy for Wells Fargo Investment Institute, a subsidiary of Wells Fargo Bank N.A., which is focused on delivering the
highest quality investment expertise and advice to help investors manage
risk and succeed financially.
But
high yield actually has
equity - like characteristics, so if you're immunizing the duration and loading up on credit, you are doubling down on your
risk profile.
«
Risk appetite has continued to improve over the past few days with
equity markets, the euro and the pound continuing to trade near their recent
highs,» said CMC Markets analyst Michael Hewson.
Like IRR, the
higher the
equity multiple, the greater the projected return on your initial investment and the greater the potential
risk.
Scott Wren is a senior global
equity strategist for Wells Fargo Investment Institute, a subsidiary of Wells Fargo Bank N.A., which is focused on delivering the
highest quality investment expertise and advice to help investors manage
risk and succeed financially.
The company's weaknesses can be seen in multiple areas, such as its generally
high debt management
risk, disappointing return on
equity and generally disappointing historical performance in the stock itself.»
The
equity appreciation would need to be very
high over the next 4 years to be worth the
risk it would seem.
Earnings are
high and
equity holders still are being somewhat
risk - averse, he says.
Equity correlation
risk The perception that
high yield issuers may have trouble generating sufficient cash flow to make interest payments could make them behave like
equities.
What excites me about
equity crowdfunding is that people can typically make very small bets (say $ 500), while they learn about what I've found to be the
highest risk and most interesting asset class on the planet: startups.
Equity crowdfunding investments in private placements, and start - up investments in particular, are speculative and involve a
high degree of
risk and those investors who can not afford to lose their entire investment should not invest in start - ups.
A wobbly
equity market, expectations for
higher interest rates and weaker economic growth in the first quarter have inspired some pundits to claim that bear - market
risk for stocks has spiked
higher in recent weeks.
We maintain our focus on
high - quality
equity, fixed income securities and a diversified portfolio designed to achieve solid
risk - adjusted returns.
Sean Lynch is the co-head of global
equity strategy for Wells Fargo Investment Institute, a subsidiary of Wells Fargo Bank N.A., which is focused on delivering the
highest quality investment expertise and advice to help investors manage
risk and succeed financially.
Synchronised global growth, judiciously mindful central bankers and moderated geopolitical
risks continue drive
equity prices
higher.
In fact, only a permanently low
equity risk premium can justify the
high stock prices we now enjoy.
They bought enormous amounts of mortgages and other debt instruments, and they drove down interest rates to virtually zero to ensure that the large investment banks and financial institutions survived — forcing retail investors to participate in
high -
risk securities such as
equities and corporate debt instead of stashing their money in banks.
I have devoted a large portion of my research to this effort, and I have found that it is quite possible to anticipate the onset of a recession and reduce
equity exposure when the
risk of recession is
high.
The
equity risk premium is the
higher return an investor receives, above the so - called riskless rate.
If you are after
high returns and can tolerate
high risk, buy the broadest and cheapest
equity index tracker you can.
Therefore
high -
risk investments are compensated with higher premiums Equity Risk Premiums are also commonl
risk investments are compensated with
higher premiums
Equity Risk Premiums are also commonl
Risk Premiums are also commonly...
It also can be used to compare the whole market against bond yields... In most cases the earnings yield of
equities are much
higher then in
risk free treasury bonds Earnings yield is basically the amount of earnings you buy for every dollars worth of...
However, the yields of Treasuries are paltry while credit instruments like
high yield bonds exhibit
equity - like
risk, albeit with potentially
higher yields.
Alternative investments, such as hedge funds, private
equity / private debt and private real estate funds, are speculative and involve a
high degree of
risk that is suitable only for those investors who have the financial sophistication and expertise to evaluate the merits and
risks of an investment in a fund and for which the fund does not represent a complete investment program.
Dividend stocks are enticing to investors during periods of volatility because in such a market they tend to perform well relative to more growth - oriented or
higher -
risk equities.
The ability for
equities to generate
higher rates of return help to compensate for the additional
risks of investing in them.
Private
Equity funds have been a major tool used in advancing the economy of many nations to help start - ups or
high risk ventures get their footings in the market place.
High Risk — Income (H / INC) Medium to higher risk equities of companies that are structured with a focus on providing a meaningful dividend but may face less predictable earnings (or losses), more leveraged balance sheets, rapidly changing market dynamics, financial and competitive issues, higher price volatility (beta), and potential risk of princi
Risk — Income (H / INC) Medium to
higher risk equities of companies that are structured with a focus on providing a meaningful dividend but may face less predictable earnings (or losses), more leveraged balance sheets, rapidly changing market dynamics, financial and competitive issues, higher price volatility (beta), and potential risk of princi
risk equities of companies that are structured with a focus on providing a meaningful dividend but may face less predictable earnings (or losses), more leveraged balance sheets, rapidly changing market dynamics, financial and competitive issues,
higher price volatility (beta), and potential
risk of princi
risk of principal.