Sentences with phrase «higher average return»

That allows them to accept risks that should lead to higher average returns over the long term.

The following table lists the two sectors with highest average returns and the two sectors with lowest average returns for each calendar month.

It is true that, in isolation, high yield bonds have had high average returns in the past.

The payoff: Risk doesn't guarantee higher average returns, but it makes them more likely over the life of a long - term investment.

Stocks with lower price multiples tended to produce higher average returns than stocks with higher price multiples.

This paper asks some critical questions of the concept of commodities as an asset class, noting that, historically, futures contracts have been an inconsistent hedge against inflation, and the historically high average returns of commodity futures portfolios were driven largely by choice of weighting schemes.

You exchange higher average returns for the ability to receive money when you most need it: when your house goes down in value or when you're about to lose your job.

While illiquid bonds had slightly higher credit spreads and directionally higher average returns, portfolios that tilt toward (away from) less (more) liquid bonds exhibit considerably higher levels of volatility.

Sure enough, the researchers found that companies with one or more women on the board delivered higher average returns on equity, lower gearing (that is, net debt to equity) and better average growth.

Smaller funds are generating higher average returns and are consistently outperforming mid-size and large funds, according to London - based research firm Preqin.

The low interest rate environment may also have encouraged a shift in investments towards hedge funds as, in the past, hedge funds have achieved higher average returns than traditionally managed investments, albeit in exchange for greater risk.

«Profitable firms generate significantly higher average returns than unprofitable firms despite having, on average, lower book - to - markets and higher market capitalizations.»

Aims for higher average returns over the long term.

Instead of picking a fund just because it's in a category with high average returns, you should choose either an index fund, or a managed fund that has a clear and simple strategy, consistently good (but not spectacular) long - term returns, low portfolio turnover, high tax efficiency and economical annual expenses.

Put differently, as intuition would suggest, below median P / E multiples typically lead to higher average returns, while above median multiples have historically been associated with periods of below - average returns.

(The UK market's high average return can almost be entirely explained by a couple of months following the 1973 - 1974 bear market where the MSCI UK index rocketed higher as investors anticipated the end of that period's recession.)

They noted that emerging markets (EM) have the attractive qualities of high average returns and low correlation with developed markets (DM).

Studies show that a more financially literate individual tends to have a higher average return on his or her 401 (k) plans.

By taking greater risk in conditions that we associate with a high return / risk ratio on average, and taking less risk otherwise, we believe that we can accrue a high average return / risk ratio over time.

In 1981 it was discovered that the small cap stocks in US have higher average return than large stocks, the difference not explainable by the market beta.

Although there's no relationship to speak of in the middle quintiles, the lowest quintile of volatility shows the highest average returns, and the highest quintile of volatility shows the lowest average returns.

Instead, we believe that some market conditions may have a higher average return / risk tradeoff than others, and that these conditions can be identified in a disciplined way.

With the high average return of stocks, that's where you'll get the biggest bang for your invested buck over the long - term.

Amongst the quant funds, the highest average return comes from the Quantitative Directional strategy.

Generally, quantitative funds have a higher average return and a lower average standard deviation than qual funds.

It could be argued that if someone nest egg is too small for retirement, they should stay in equities as long as possible to try to grow it, but that would be a contentious issue, for sure, since although stocks have a higher average return than bonds and bank accounts, the risk of loss in short time periods is higher.

You're better off to go with a higher average return.

Ever since the 1970s, when it was discovered that value stocks (i.e., high E / P stocks) tend to have higher average returns than growth stocks (i.e., low E / P stocks), there has been a large body of academic research which has confirmed the existence of a value premium, namely, that value stocks outperform growth stocks.

They show that contrarian strategies have higher average returns, even at the low 25th percentile of returns.

You will not earn a higher average return for accepting the unnecessary risk.

Investors must be paid a premium, in the form of a higher average return, to compensate them for the higher risk of owning shares.

Studies show that a more financially literate individual tends to have a higher average return on his or her 401 (k) plans.

During the period of June 20 to September 20 from 2001 to 2015, the lowest average return was for the S&P / Valmer Mexico Sovereign 7 + CETES Index, at 6.05 %, and the highest average return was for the S&P / Valmer Mexico Sovereign International UMS Index, at 17.23 %.

Over the 16 - year period, the payers had a higher average return on equity and a higher gross profit margin than nonpayers.

Figure # 1 tells us that higher risk investments will carry a higher average return over the long run.

These investments are ranked from lowest average return to highest average return.

On average stocks are more volatile but they also have a higher average return.

Depending on whether we get good or bad results early in retirement, we might need a lower or higher average return.

You want your portfolio to be efficient — to have the highest average return, given the highest risk you are prepared to accept.

(The UK market's high average return can almost be entirely explained by a couple of months following the 1973 - 1974 bear market where the MSCI UK index rocketed higher as investors anticipated the end of that period's recession.)

In this turf war, the critics (think Dave Ramsey life insurance) levy any number of attacks such as «cash value life insurance is too expensive», «buy term and invest the difference» (invest with us) OR my favorite, «that other investments offer a higher average return».

«So, small - cap stocks have higher average returns than large - cap stocks, and stocks with higher ratios of book value to market value have higher returns than low book - to - market stocks.»

In the remaining three years, non-users earned the highest average returns.

And research has shown that taxpayers receive a high average return on investments in high - quality early childhood education, with savings in areas like improved educational outcomes, increased labor productivity, and a reduction in crime.