Sentences with phrase «higher safe returns»

>> BEWARE STRETCHING FOR YIELD With interest rates so low, «financial engineers» are back to cooking up exotic derivatives to appeal to investors seeking higher safe returns.

Not exact matches

More specifically, investors have sought the potential for higher returns from riskier assets like private company stocks, as safer investments like T - bills and bonds pay out next to nothing.
Warren Buffett buys investments with «economic moats» in order to earn safer, higher returns.
Compounding the problem, investors tend to believe not only that their home country a safer place to invest, but also that it will produce higher returns, defying the basic financial concept that risk and expected return are related.
They mislead customers to believe they're buying a smooth, high return on a «safe» investment, but what they receive in income stream is simply a return of their capital, Fisher maintains.
If someone alerts you to an investment that is allegedly safe but pays a much higher return than an FDIC - insured saving account, that's a risky investment in disguise.
You can build a conservative portfolio of safe borrowers on Lending Club and still see returns of 7 % or higher.
In essence, we find that the secret to Buffett's success is his preference for cheap, safe, high - quality stocks combined with his consistent use of leverage to magnify returns while surviving the inevitable large absolute and relative drawdowns this entails.
Former Fed Governor Stein highlighted that Federal Reserve's monetary policy transmission mechanism works through the «recruitment channel,» in such way that investors are «enlisted» to achieve central bank objectives by taking higher credit risks, or to rebalance portfolio by buying longer - term bonds (thus taking on higher duration risk) to seek higher yield when faced with diminished returns from safe assets.
Since the bonds are very safe, the return is not going to be as high but will be more stable.
Based on this aspect, ICOs can not be considered safe investments, but rather high - risks with huge potential for high returns.
Meanwhile, Bloomberg reports that pension funds, squeezed for sources of safe return, have been abandoning their investment grade policies to invest in higher yielding junk bonds.
Learn more about the various types of High Yield Safe Investments Return from Legitimate High Yield Investing to More High Yield Passive Income
For instance, safe and liquid bank deposit accounts and short term Treasuries are yielding close to nothing while there are still high yield corporate bonds delivering double digit returns.
By design, the Fed wished to push investors into higher risk assets such as equities and real estate by lowering the return on safe bond investments.
Historically, over long periods of time, money invested in riskier assets such as stocks has generally rewarded investors with higher returns than funds invested in ultra safe and liquid assets.
He recognized early on that applying leverage to safe, cheap, high - quality stocks would magnify returns without the risk of fire - sale, allowing him to stick to the principles outlined above over the course of multiple economic and market cycles.
Low rates make it difficult for insurers to earn high returns due to the fact that they are required to hold a significant amount of safe debt to guarantee they can cover the insurance policies they write.
Also, the newest «safety» measure doesn't really even make the game any safer, since kickoff coverage team members and return team members will still slam into one another at high speed before the ball is fair caught.
The current international consensus of experts (Zurich consensus statement), [1] views computerized neuropsychological or neurocognitive (NP) testing as having clincal value in evaluation for concussion and as an aid in determining when it is safe for an athlete to return to play after a concussion, and recommends formal baseline NP screening of athletes in all organized sports in which there is a high risk of concussion (e.g. football, hockey, lacrosse, soccer, basketball), regardless of the age or level of performance.
They can also use accounting tricks to shift off their income onto less - wealthy people (e.g. give high - risk / high - return investments to their children; and keep low - income safer investments; or give high - paying jobs to their kids instead of themselves).
Those who return may be forced to live in flood - prone areas because they can not afford to pay the higher rents in safer areas.
Vaccines are amongst the safest and most cost - effective measures that we have to improve public health and protect from disease and it is vital that we achieve high vaccination rates to prevent the return of the many and terrible diseases that they prevent,» he said.
A high - sensitivity blood test can reveal when it might be safe for concussed hockey players to return to play.
It's 1997, and the British are about to return Hong Kong to Chinese rule, Joe Lennox, a young operative for SIS (MI6), loses both his girlfriend and his first high profile asset - a prominent defector who disappears from a safe house.
First, the flawed assumption is that one can get a higher return in a safer investment and this is hard to justify in today's low interest rate climate.
It seems like anything considered safe is yielding practically nothing nowadays, and I have a long enough time horizon to tolerate some risk if it can be justified by higher expected returns and better diversification.
On the other hand, if you really wanted to play it safe even a GIC could give you a 2 % annual return: enough to spin off $ 200,000 a year for life, albeit gradually losing ground to inflation and being subject to the highest level of tax.
One should always keep in mind that there is nothing like safe investment which will guarantee you high returns in a short span.
To this portfolio of cheap, safe, high quality stocks Buffett adds leverage, which serves to increase returns but also increase losses.
Bonds are also a relatively safe investment, so a low - risk allocation should have more assets in the bond market and less in the higher risk, higher return stock market.
Certificates are a great way to earn safe, guaranteed returns, with a low minimum of $ 1000 and high dividend rates.
In turn, investors get to pick and choose whether they want to invest with a risky borrower and earn a higher rate of return, or invest with a safer borrower with a lower rate.
Because your money is safe, accessible, and liquid, you won't see a very high return.
We see a wider gap between the prospective returns for safe - haven and risk assets, reflected in higher expected returns for equities versus bonds and for non-U.S. equities versus U.S. equities.
I don't recommend it, but if you want to shoot for a somewhat higher return with a portion of your «safe harbor» stash, you could move some funds into an ultrashort - term bond fund, bank loan fund or even a short - term bond fund.
For an investor whose main goal is to preserve capital, meaning she is willing to accept lower gains in return for the security of knowing her initial investment is safe, high - risk funds are not a good fit.
Conversely, if rates stay tame and / or fall, NWN's total returns could be much higher as the value of its dividend — which is extremely safe and well - covered — relative to the risk - free rate would increase.
Historically, over long periods of time, money invested in riskier assets such as stocks has generally rewarded investors with higher returns than funds invested in ultra safe and liquid assets.
At the same volatility, a higher total return delivers a higher Safe Withdrawal Rate.
At a lower volatility, a lower total return can deliver a higher Safe Withdrawal Rate.
Does a higher total return translate into a higher Safe Withdrawal Rate?
«I think that's a fundamentally safer way to generate returns than investing in the popular market at an all - time high
Cash value life insurance is an extremely safe investment that can be utilized as needed to fund higher risk / return investments.
The stock market has, over time, consistently provided investors with higher returns than «safer» investments like certificates of deposits and bonds — but there are also risks because buying stocks means acquiring an ownership interest in companies.
As they looked like low risk investments (a lot of these MBSs had AAA ratings) and provided high returns in relation to other so - called safe investments, investors went to pour more and more money into purchasing them.
If you want to ensure a higher (and safer) rate of return for your retirement portfolio, then it's important to know what not to invest in after retirement.
Look for a cap rate significantly higher than the interest rate on the mortgage, and higher than the returns on safer investments.
They offer safe, steady and predictable returns that have low correlations to stocks, making them an excellent way to balance higher - risk equities in a portfolio.
Because your cash is so safe, you won't see high returns.
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