Sentences with phrase «high equity risk»

«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 commonlrisk investments are compensated with higher premiums Equity Risk Premiums are also commonlRisk 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 princiRisk — 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 princirisk 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 princirisk of principal.
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