Sentences with phrase «investors run the risk»

To be sure, low interest rates mean that annuity payments, including those from QLACs, are relatively modest now and investors run the risk that inflation will eat away at payouts over time.
Options investors run the risk of losing their entire investment in a relatively short period of time and with relatively small movements of the underlying stock.
Relinquished Property Loan: By transferring the relinquished property to the Exchange Accommodation Titleholder, the Investor runs the risk of triggering the due - on - sale clause in his relinquished property note.

Not exact matches

The revolution in low - cost index funds and ETFs has been great for investors, but overreliance on cheap investments runs the risk of leaving people short of retirement goals.
Identifying potential risks — and your planned responses to them — will show investors how well prepared you are to run your business.
LONDON, Jan 31 (Reuters)- Global investors trimmed equity holdings by 1.2 percentage points in January, concerned that markets have grown complacent after a thundering bull run and seeing risks of an inflation wake - up call.
LONDON, Jan 31 - Global investors trimmed equity holdings by 1.2 percentage points in January, concerned that markets have grown complacent after a thundering bull run and seeing risks of an inflation wake - up call.
Using a common risk assessment tool — called a Monte Carlo simulation — NerdWallet ran 10,000 possible outcomes for investors, based on historical S&P 500 and Treasury returns, and the volatility (riskiness) of those returns.
Startups who hold off on publishing sometimes cite the need to protect intellectual property, but critics of the practice point to another reason: With early - stage capital already hard to come by, companies run the risk of scaring off investors if they open their underbaked ideas to rigorous scientific scrutiny.
Investors without private market exposure are also running meaningful concentration risk, not just in terms of the number of public companies (less than 4,000) relative to private companies (more than 6 million), but because publicly traded companies are now more highly concentrated within certain industries as a result of strategic M&A.
«I think since, really, I'm a conservative investor, that experience of being in debt and also the experience of seeing things happen to people who took too much financial risk and got hurt, led me to be pretty conservative — I'm a guy that looks for singles and not home runs,» Bach said.
Although bitcoin could run into regulatory hurdles in key markets like China, where domestic exchanges reportedly risk being closed, some investors are betting that it will only get more popular.
The investor known for running a bear fund suggests a stock market crash may be virtually unavoidable — citing Federal Reserve Policy and geopolitical risks.
Instead of running for cover, global markets saw a surge of risk - on sentiment after investors reassessed what to expect from a Trump presidency.
While these companies have some liquidity risk, severe problems will not lead to bankruptcy or a «bank run» through hemorrhaging deposits; instead investors will provide less capital and fewer loans will be originated.
Last week, Moody's Investors Service downgraded Tesla's credit rating and said Tesla risked running short of cash by the end of the year.
They also allow those investors to avoid the high costs of stock - brokerage commissions and financial planning fees that eat into returns, as well as the risks of investing in individual companies that may choose less - competent leaders or run into unforeseen problems.
If markets are efficient and long - run risk is real, then bond investors should have outperformed equity investors some of the time.
For a high - value investor with a long time horizon and income to satisfy living expenses, the latter long - run risk of portfolio erosion is almost certainly the more important one to consider.
But while the benefits of a large and diverse investor base have been demonstrated, the costs — both in terms of dollars and time — of managing these investors and complying with federal reporting obligations run the risk of undermining these benefits.
This is not to say that investors should be running for the hills, but now might be a good time to start reducing the risk in your portfolio.
The crisis, which has affected every level of government in the state, is a cautionary tale for not only public spending run amok but also independent investors taking too large of a risk by seeking high yields.
So, investors need to ask if the current narrative driving markets favours taking risks or running the other way.
They were certainly effective over the short run, particularly in fostering a significant reduction in the level of investor risk aversion.
The risk to the investor on the sidelines is that he or she leaves it too late, and misses much of the upside from the next bull run.
The gradual unwinding of quantitative easing means investors are running higher risks across a broader range of asset classes than would normally be the case.
In my view, investors who view current valuations as «justified relative to interest rates» are really saying that a decade of zero total returns on stocks is perfectly adequate compensation for the risk of a 45 - 55 % market loss over the completion of the current market cycle - a decline that would historically be merely run - of - the - mill given current valuations, and that certainly can not be precluded by appealing to low interest rates.
As an accredited investor, this is one area to invest in because non accredited investors can hardly survive this industry because of the high risk despite this is despite the fact that it gives good return on investment in the long run.
Investors who simply extrapolate recent trends without comparing current price to value run the risk of buying near highs and selling near lows.
That said, after the stellar run and the given the overly bullish sentiment, risks of a deep correction are high and investors should remain defensive.
The risk of cutting and running like so many fear - driven investors did on that fateful 1987 day is that even if you avoided some losses by selling early, you'd run the risk of missing out on the recovery because, well, how would you know when to jump back in?
In the short - run, market returns tend to be influenced most by a combination of investor sentiment, risk preferences and price momentum, all of which are interrelated.
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.
If you're an investor who wants high - risk bonds issued by emerging countries, you're still not likely to run into any problems with index ETFs.
We believe that this type of risk control provides investors with a much less stressful investing experience and helps them to stay invested for the long run; one of the key success factors for investing.
Over the (very) long run, equities out - perform bonds and cash, as is evident below, but may not be practical alternative to bonds for many investors, because of investment horizon, risk - tolerance, dependence on yield, or all the above.
Nevertheless, as the U.S. economy has run for nine consecutive years without a recession, investors should be aware of the downside risk in such an event.
Otherwise, you run the risk of doing what what many investors do — investing too aggressively when the market's doing well (and selling in a panic when it drops) and too conservatively after stock prices have plummeted (and missing the big gains when the market inevitably rebounds).
Our strategies strive to dampen risk and preserve capital during turbulent times and to give our investors the best chance to achieve returns that are balanced, mindful of downside risk and sustainable over the long run.
Critics (many with entrenched interests) have long asserted that sharp market corrections could spur ETF and index fund investors to run for the door, exacerbating market risks.
As a result, when S&P announces that Treasury securities now do run a risk to investors, and the market get spooked, large pools of money still flood into Treasury securities.
There are options out there, but why run the risk of owning U.S. debt when so many of the world's greatest debt investors / raters (PIMCO's Bill Gross, S&P), are so wary of U.S. debt?
Investors earn the carry as their return if spot prices do not change, and risk manifests through changing spot prices.5 Momentum and value, in contrast, aim to take advantage of those changes in spot prices — momentum over the short run, and value over longer horizons.
It's essentially an emotional reaction and potentially dangerous one, as you run the risk of buying in only after anxious investors have already significantly boosted the price.
Value investors who do not have an owner mentality run the risk of placing their capital in companies that will go nowhere fast.
An interesting paper on the optimum level of leverage for Canadian portfolio investors is at Long Run Effects of Risk.
Value investors who reduce their value exposure following periods of value underperformance run the risk of mistiming their exposure and missing out on the periods when the value factor recovers.
But that additional risk investors are taking will be awarded with appropriate returns in long run.
Liquidity follows quality in the long run, but in the short run, the willingness of investors to take additional credit risk supports the prices calculated by the formulas.
«The risk of runs created by a combination of fixed net asset values, extremely risk - averse investors and the absence of explicit loss - absorption capacity remains a concern,» he said.
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