Sentences with phrase «investor for taking on the risk»

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.

And that will require investors to adjust their strategy and their expectations henceforward — by paying more for equities, taking on more risk with fixed income and socking away more than they used to.

While investors will have to find stocks with higher yields, pay more for them and take on more risk in bonds, the biggest change in a permanently low - rate world is that people will need to set aside more of every paycheque if they want to keep the same goal for retirement income.

Both Ruiz and Cortazzo say they are using variable annuities sparingly with clients at this point, but for investors who are uncomfortable taking on a lot of market risk, annuities can be a solution.

This makes it far easier for investors to take risk on unproven ideas and unproven teams.»

«With the US labor market recovery gaining momentum, the hope for stronger global growth in 2014 is motivating investors to take on risk,» said Kathy Lien, managing director of FX Strategy at BK Asset Management.

Investors rightfully demand a greater return for taking on the risk of owning stocks.

For example, some investors may have taken on more risk in their portfolios in recent years by moving into lower - quality bonds or dividend stocks, in an attempt to generate additional yield.

The Strategic Growth Fund is not appropriate for investors who wish to speculate under that specific set of conditions, because we have no historical evidence that it is sensible to take market risk, on average, once that syndrome emerges.

Potenza: As the yield curve flattens, investors get less compensation for moving further out on the curve and taking on more duration risk.

But in one key area investors face a familiar dilemma, which they've endured for the last nine years: finding income in a still low yield environment without taking on too much risk.

An investor saving for retirement may be comfortable taking on more risk than an investor saving for a down payment.

This very low market volatility can lead investors to take on more risk, and in a period of still relatively low interest rates, to «reach for yield» — that is, buy riskier assets than one would otherwise, in order to achieve a desired profit or savings goal.

Johnson, who has lived and worked in Brazil, added, «In talking to investors and analysts, rather than people taking the time to understand what's really going on in Brazil, the easier thing [for them] to do is to say if the company has Brazil risk, avoid it — and that is unfortunate.»

Investors are too optimistic and taking on too much risk in this low volatile environment, setting the stock market up for a potential downfall, according to strategists at investment bank Societe Generale.

As they have done so, credit spreads on these assets have declined, which means that investors are receiving less compensation for the risk they are taking on.

For the investor willing to take on slightly more risk for slightly more yield, SLQD is a very attractive optiFor the investor willing to take on slightly more risk for slightly more yield, SLQD is a very attractive optifor slightly more yield, SLQD is a very attractive option.

Our return expectations across most asset classes are at post-crisis lows, but we believe investors are getting compensated for taking on risk in equities, selected credit / emerging markets (EM) and alternatives.

If market internals improve, we'll take a signal that investors have shifted back to risk - seeking, and that would ease our near - term concerns, but wouldn't materially change our expectations for a market loss on the order of 50 % or more over the completion of the current cycle.

Investors should take note of the days Shanghai - Hong Kong Stock Connect is open for business and decide according to their own risk tolerance capability whether or not to take on the risk of price fluctuations in A-shares during the time when Shanghai - Hong Kong Stock Connect is not trading.

The word «passive» can take on another important sense in these discussions, which is the sense associated with a «passive ethos», where investors refrain from placing trades for speculative reasons, and instead only trade as necessary to carry out their saving and consumption plans, or to transition their portfolios to a state that matches their risk tolerances as they age.

I think most investors would be wise to take a more conservative posture at this point, and be willing to give up some upside for a while... just depends on how much relative performance risk you can stomach.

I don't believe most LC investors are being sufficiently rewarded for the degree of risk they are taking on with these loans.

The reason for this is that currently investors tend not to take risks but to rely more on logic and projects» implementation evaluations.

For many, being a «value investor» therefore has meant taking on commodity risk and / or interest - rate risk.

Fidelity ® Short Duration High Income Fund (FSAHX) This fund might be appropriate for investors looking for higher yield who are willing to take on more credit risk while limiting interest rate risk.

A small but growing number of countries now have legal requirements for institutional investors to report on how their investment policies and performance are affected by environmental factors, including South Africa and, prospectively, the EU.36 Concern about the risks of a «carbon bubble» — that highly valued fossil fuel assets and investments could be devalued or «stranded» under future, more stringent climate policies — prompted G20 Finance Ministers and Central Bank Governors in April 2015 to ask the Financial Stability Board in Basel to convene an inquiry into how the financial sector can take account of climate - related issues.37

The success of the pending bond sale and the yields investors are willing to accept in return for the taking on the risk of lending their money to Puerto Rico will be very telling.

In other words, the outperformance is to compensate investors for taking on what's actually a higher level of risk, a reflection of market supply - and - demand dynamics or the result of common decision - making biases.

Although corporate defaults are also on the rise, investors are being compensated for taking incremental risk in credit markets.

Investors need to be compensated for taking on additional risk.

The majority of economists, however, agree that the concept of an equity risk premium is valid: over the long term, markets compensate investors more for taking on the greater risk of investing in stocks.

The first step for any budding investor is to work out the right amount of risk to take on.

Some investors and advisers can succumb to the same temptation: by borrowing money to invest they're shooting for explosive gains by taking on explosive risk.

Given its volatility, older investors or those closer to retirement would probably not grant this fund much weight, if any, but those that have long horizons may find themselves able to take on the risk for the potential reward.

The theory is based on Markowitz's hypothesis that it is possible for investors to design an optimal portfolio to maximize returns by taking on a quantifiable amount of risk.

Active management with a focus on quality to ensure investors are rewarded for the risk taken and remains a true defensive strategy to deliver stable absolute returns over time.

While «The Peril» focuses mostly on the economy and the risks of deflation, there are also important insights for investors to take away from the discussion.

The other half of the CAPM formula represents risk and calculates the amount of compensation the investor needs for taking on additional risk.

Their lower volatility and steady dividend payments make them ideal for the investor who is just starting out and doesn't want to take on a lot of risk.

For many, being a «value investor» therefore has meant taking on commodity risk and / or interest - rate risk.

Demand for income remains strong but investors may be taking on more risk than they realise.

An investor saving for retirement may be comfortable taking on more risk than an investor saving for a down payment.

This effectively eliminates counterparty risk, but more importantly reduces the need for investors to «run on the bank» (i.e. take their money out if they think the bank might fail) which can cause the bank to fail regardless.

And if interest rates do start to rise, that will mean good news for investors looking for income for the portfolios because it will mean that they don't have to take on as much risk to obtain the same yield from their investments.

Still, for investors who don't mind taking on added risk in exchange for improved returns, there are ways to play Bitcoin without actually buying the digital currency.

Investors who are comfortable taking on more risk can fund loans for borrowers that have lower grades.

An investor willing to take on volatility or the potential for losses should be compensated for accepting that risk.

As investors, we deserve a rate of return that compensates us for taking on risk.

Beta, compared with the equity risk premium, shows the amount of compensation equity investors need for taking on additional risk.