Sentences with phrase «if riskier assets»

Because if riskier assets could be counted on for higher returns than they wouldn't be riskier.

If the risky assets have a month - end combined value less than the combined initial allocations, we rebalance them to equal weights for next month.

Treasuries remain effective diversifiers if risky assets take a hit, but our analysis suggests other ways to diversify in a rising interest rate environment.

If the risky assets have a combined month - end value greater than the combined initial allocations, we rebalance to the initial allocations and move the excess permanently (skim) to cash.

Not exact matches

If you think stocks will outperform, buy riskier assets.

Put it simply, in 2006 cash is king; or, if you are patient enough, short all sort of risky assets.

Much like real estate, online assets can be a risky but lucrative investment if you're comfortable with technology and enjoy being...

If fund managers are trying to pass off some of the best safest assets today as risky, simply because their mandates restrict them from investing in them, then it's time for us to take back control of our own wealth management.

If you find yourself on the efficient frontier past the tangency point (see above), one can easily show that reducing risk involves no cash holdings, but rather keeping all of your portfolio in risky assets.

The idea is that if everyone is so terrified of putting money into risky assets that they'd prefer to hold cash, then all the sellers of equities have already been scared away.

Allocate the balance of the portfolio to the equally weighted 1, 2, 3, 4, 5 or 6 risky assets with the highest positive momentum (reducing the number of risky assets held if not enough have positive momentum).

If you put your $ 5,000 into a riskier asset class such as stocks (ie a stock mutual fund) then in 6 months your investment might be worth more than $ 5,000 or it could be worth less than $ 5,000 (possibly a lot less).

If our model predicts a higher loss potential than you have specified for your portfolio, we will execute a reallocation from a riskier asset class (such as stocks) into a lower risk asset class (such as government bonds or money market funds).

If were going to have fiat money, do it in such a way that bubbles do not develop, which means not caring about the effects of policy on risky asset markets.

When reading «The Intelligent Investor» they claim that you can increase you position to 100 % stocks (risky) if you meet a number of criteria, one of which is liquid assets to pay for living expenses for 1 year.

In financial theory, riskier investments are expected to be more profitable because investments normally offer a reward in exchange of risk absorption — if they offered no reward, investors would buy the less - risky assets instead.

So if I am looking at a portfolio of risky assets, I would split each asset into two.

If you're more risk adverse, you'll want to consider your exposure to riskier assets, such as real estate, commodities, and even international stocks and bonds.

And if the underlying asset is risky or illiquid, then so is the derivative.

The foundation of dynamic risk management is actually fairly straightforward: if the risk within a portfolio increases, the number of risky assets in that portfolio (such as equities) is reduced.

This can be advantageous to you if you don't want to put your assets as stake but can be risky for the lender as he doesn't have anything to secure the loan with.

What it says is that when you invest in a risky asset, you have to receive a return that is higher than what you could get if you had invested in a risk free security.

The risk - free investments (cash - stable vehicles such as savings and CDs) are not correlated to the risky assets of the portfolio, so even if my risky stocks sink one quarter, my core savings will be untouched.

Riskier assets like stocks have a higher rate of expected return so if your time horizon is long enough, don't avoid stocks completely just because they are more volatile than fixed income or cash.

If they decide to use the TFSAs as a long - term savings vehicle, they can achieve the returns they need with a less risky asset mix than the typical 60 % equity to 40 % fixed income mix.

If the markets come up with another one, like risky asset correlations, it will have validity, restraining speculative behavior, until people overwhelm it, and a new bust happens.

Then in this case, you can afford to put a large portion of your investments in risky assets such as stocks because you will still have enough time to wait for the stock market to recover even if it crashes today (look what happened in 2008 and 2009 and where the markets are today).

However, if the U.S. and world stock markets start to lose steam, which early clues suggest could already be the case, then safe - haven gold would benefit as money starts to flow out of the riskier asset class, equities.

If you put your $ 5,000 into a riskier asset class, such as stocks (or a stock mutual fund), then in 6 months your investment might be worth more than $ 5,000 — or it might be worth less.

Selling an option can be very risky especially if you don't already own the underlying asset.

It follows that if the nine - year credit cycle expansion is downshifting, riskier stock assets may depreciate and prompt lenders to become even more restrained.

While you are getting closer to retirement, you should still have between 15 and 25 years — if not longer — before you stop working and with that kind of time horizon you shouldn't be overly nervous about owning riskier assets.

But concentrating all your assets in your home country, even if you're diversified among sectors and asset classes, is actually more risky than holding a global portfolio.

They can not think of stocks as being too risky if they are willing to invest so much of their life savings in this asset class.

If you want a spit - in - the - wind estimate use 120 minus your age for the percentage in risky assets, and the rest in safe assets.

If you are a retail investor, the best thing you can do is set an asset allocation between risky and safe assets.

A high growth asset can be very risky if you overpay for it.

If you don't want to do that, because you're close to having enough, or will soon, then start looking over the risky (sector) asset classes in rows 99 to 104.

If you start building your portfolio by finding the right mix of asset types, you'll have more control over how risky your portfolio is.

Let's assume that the goal of diversification is to reduce our risk by taking on new, uncorrelated risks in order to seek equitylike returns at bondlike risk — our industry's holy grail — rather than merely to invest some of our money in low - volatility markets.8 Most would suggest that other risky assets should serve this purpose — if they offer an uncorrelated risk premium (e.g., if that risk premium is related to risk, not to beta).

If you move your money from low expected return to high expected return risky assets, you lose diversification.

But to get that better interest rate (or sometimes any loan at all) can be risky; if you are unable to pay off your loan as scheduled, the assets you used as collateral will be seized and sold, and the money raised by selling the assets will be used to repay the loan.

Would anyone have invested in a Canadian non-bank sponsored ABCP if shown a list of assets containing 59 per cent leveraged super senior swaps insuring risky loans of a number of European banks, where the return would be only marginally higher than treasuries, even if a rating agency gave it an AAA?

If you want to protect your assets — now and in the future — it's too risky to cut your limits to state minimums.

Trowbridge explains that families with teenage drivers need high liability limits because teens are among the riskiest drivers on the road, and if they cause an accident, the injured party can come after the parents» assets.

ETFs are just groups of stocks, commodities, or bonds, and they're less risky than buying individual assets because the group works to balance itself out; if one stock tanks, it's offset by other assets in the ETF.

If you're already insured for another vehicle, your insurance agent can help you identify the things that make you a riskier asset, as well as the things that work to your advantage.

On the other hand, if you follow someone who takes high risk and trades risky asset classes, such as currencies, then you could easily lose a substantial amount of money.

For now, if a correlation with stocks does exist, some analysts have suggested that cryptocurrencies such as bitcoin could be an indicator of appetite for risky assets such as equities.

He added: «I think one has to see that it's a that's a very risky asset class — if it's an asset class.