Concentration risk Excessive exposure to a specific market sector within any asset class could put
investors at greater risk.
ICOs have already been called out for putting inexperienced
investors at a greater risk than those already accustomed to spotting scams, and this example helps validate that argument.
Not exact matches
Nevertheless, «the
risk - reward in GE is fantastic... you're buying GE
at a massive discount to where some of the
great value
investors in the world own this stock.
One study looked
at the behavior of about 60,000
investors from 1991 to 2002 and found that people took
greater market
risks when their party controlled Washington.
* Since assuming leadership of CSIM in 2010, Chandoha has achieved record growth by developing a cultural commitment to providing
investors with quality funds
at a
great value, managing them with integrity and examining
risk from multiple angles.
Investors who want to store gold
at home should also be aware that the
risk of theft is probably the
greatest threat to their precious metals holdings.
The centralization of securities data means
investors are
at much
greater risk that their privacy will be breached or confidential information about their investments will be misused.
Today's «Trends and Tail
Risks» takes a look
at the bond market, where
investor confusion in this post-crisis world is perhaps the
greatest.
Fixed income securities, such as bonds and preferred stock, subject
investors to the
greatest amount of purchasing power
risk since their payments are set
at the time of issue and remain unchanged regardless of the inflation rate.
«AbbVie's Baa1 rating reflects the blockbuster success of Humira and the product's good growth outlook, offset by higher leverage and
greater product concentration
risk than pharmaceutical peers,» says Michael Levesque, analyst
at Moody's
Investors Service.
If the
risk of holding stocks is low (there is minimal
risk at times of moderate and low prices, according to the entire historical record), middle - class
investors should be heavily invested in stocks because of the
great return they provide.
At the other end of the scale, there are very high risk investments — like options and virtual currencies — which have the potential to provide huge returns but which put average investors at too great a risk of winding up with nothin
At the other end of the scale, there are very high
risk investments — like options and virtual currencies — which have the potential to provide huge returns but which put average
investors at too great a risk of winding up with nothin
at too
great a
risk of winding up with nothing.
In general, average retail
investors reach for yield
at the wrong time, and Wall Street is more than happy to facilitate that through structured notes and other high yielding investments where the
risk is
greater than the excess yield.
It must be evident that we have no enthusiasm for common stocks
at these levels... [However] we feel that the defensive
investor can not afford to be without an appreciable proportion of common stocks in his portfolio, even if we regard them as the lesser of two evils — the
greater being the
risks in an all - bond holding.
Ironically, it is often the most hands - on
investors who are
at greater risk.
«If an
investor had determined that an asset allocation was appropriate for their
risk / return goals, we would caution against changes in response to the yield environment because generally that involves taking on
greater risk,» says Todd Schlanger, senior investment strategist
at Vanguard Investments Canada.
If we were going to be theoretically consistent, we should either not count the benefits that a Passive Indexer gets from being
at an 80 percent stock allocation
at a time of insanely dangerous prices (because the
risks here are so
great that we simply refuse to look
at the possibility, just as we refuse to look
at the possibility of a VII
investor being
at a stock allocation of 120 percent
at a time of moderate prices).
Investors need to understand the
great risk of being in long term bonds
at this time.
Mike Swan, an associate portfolio manager
at Canso Investment Counsel, says that while the chance of default in a corporate bond is always present,
investors might actually be taking a
greater risk by buying government bonds.
Investors in general are
great at stock selection, but terrible
at market timing,
risk management, and position sizing.
Private
investors are
at greater risk than state - owned companies.
A mutual funds scheme collects funds from different
investors and further invests in a diversified portfolio ensuring long - term appreciation
at a fairly lower
risk and
greater returns.
The Securities and Exchange Commission (SEC) has warned
investors of cryptocurrency investing
risks, halted several ICOs and hinted
at the need for
greater cryptocurrency regulation.
The longer a rehab takes and the more money that is invested, the
investor needs to get compensated
at a
greater rate for taking a
greater risk.
Without title insurance,
investors are
at greater risk if someone challenges the ownership or intended use of the property.
I view the cheap home like apartments; more doors
at a reduced price comes with additional
risks but it produces a
greater return for the savvy
investors seeking to maximize cash flow.
Another difficulty, says Norman Miller, director of the Burnham - Moores Center for Real Estate
at the University of San Diego, is that
investors often spend their time focusing on less critical variables like cap rates and hold periods, but overlook key — but difficult to predict —
risk factors that can have a much
greater impact.
I suggest you do some analysis on which will give you
greater loss: selling
at around 80 % FMV to a newbie
investor in x months, or selling
at 70 % now and avoid carrying costs and additional
risk.