Sentences with phrase «high liquidity do»

Lessons for the next bull market (yes there will be one eventually): Low interest rates and high liquidity do not mean stock prices will stay up.

Not exact matches

While most people think about portfolio diversification in terms of high - risk and low - risk investments, it also has to do with liquidity.
These investments are not suitable for anyone who does not have a high tolerance for risk and / or has high liquidity needs.
As a result, many of the institutions and instruments have been able to employ higher market, credit and liquidity risks, and do not have capital requirements commensurate with those risks.
Liquidity-wise, it doesn't get much better than MINT in the fixed - income space: the fund trades in high volumes and its block liquidity is great.
Their actions do, however, rather undermine the common argument that high - frequency traders bring wonderful benefits to the market through the liquidity they provide.
The lack of liquidity and higher leveraging of investments via crowdfunding platforms relative to REITs makes them much riskier, yet their incrementally higher promised returns and incrementally lower implied correlations with other asset classes don't seem to compensate for the added downsides.
If the Dragon doesn't breathe fire into markets, it may be a shot of liquidity injected by policy easing that could drive stock prices higher.
First, if growth did not recover and surprise on the upside (in which case high asset prices would be justified), eventually slow growth would dominate the levitational effects of liquidity and force asset prices lower, in line with weaker economic fundamentals.
If your investment horizon is short, kindly give high priority to safety & liquidity and do not chase returns aggressively.
Many bond managers like to own RMBS for its high credit quality, liquidity, and attractive yields, but the problem is this: when interest rates move, the RMBS does what you don't want to see happen.
Once you exit a position (and presumably don't rebuy... hence just buy something with high liquidity you're not interested in), any resultant capital losses are yours to declare.
But my point is simple, given a choice I would prefer an investment option which has high liquidity, easy to understand (do not want to refer to rules book), tax efficient, have more flexibility (investment allocation choices) etc.,
6 Do you believe that High Frequency trading helps add liquidity in the market or that it distorts the market.
ETFs differ from mutual funds in that they trade on the stock exchange in the same way a stock does, and they can offer higher daily liquidity and lower fees.
Lower liquidity usually results in a more volatile market and cause prices to change drastically; higher liquidity usually creates a less volatile market in which prices don't fluctuate as drastically.
Those investors who do not have liquidity concerns and have a higher risk tolerance will have a small portion of their portfolio within these instruments.
One has to be careful here, because the time you are forced to conserve liquidity is often the same time that everyone else must do it as well, which means the cost of doing so could be high.
So we might expect a second distribution of $ 2.00 to $ 3.50 sometime in the 1st quarter of 2015, lower if the liquidity event doesn't happen, higher if it does.
If we pick a high quality business, liquidity does not matter; when we decide to sell, liquidity levels would be high by then.
I prefer investing in mutual funds, as they are more transparent wrt fund management, flexible, have high liquidity etc., Do think about these points before taking final decision.
I am willing to take a little extra risk to get a higher return; however, I don't want to stray too far from ETFs, mutual funds, large cap stocks, or other securities because I need liquidity to distribute the funds should my family member pass.
Without a high frequency use case for a well defined consumer need, and a good automated process for delivering the service, it's just not possible to unlock new liquidity in an existing, stagnant marketplace like Uber did.
Once you are done with getting adequate life cover, depending on your financial goal (s) & time - frame invest in better products than these pension plans which are more flexible, easy to understand, tax efficient and have high liquidity.
Lower liquidity tends to result in a more volatile market (especially when large orders are placed), and it causes prices to change more drastically; whereas higher liquidity creates a less volatile market, and prices do not fluctuate as significantly.
Because interval fund managers don't have to provide daily liquidity, they are able to invest in less - liquid, higher - return assets.
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