Sentences with phrase «less than market returns»

Investing in stocks can earn less than the market return for a variety of reasons.

Not exact matches

From that sample, we seek out companies that have return on equity of at least 12 % and a beta above 1, indicating that a company is less volatile than the market average.

«We had to find a niche [that had] less competition but also generated a better return than the market with less risk over time,» he says.

Ohad Lederer, an analyst at Veritas Investment Research, calculates that investors buying condos to supply the rental market are accepting annual returns of less than 4 %.

If you sell a quality product, accurately described in your marketing, at a price that's fair in relationship to its value, your return rate will be low — probably less than 5 percent.

Principal value and investment return will fluctuate with changes in market conditions, and an account in the pool may be worth more or less than the original amount contributed to the account.

A beta lower than 1 suggests that a return was less volatile than the market.

A twelve - month return of less than negative twenty percent occurred eighteen percent of the time following a downward trending market.

The economic gains and market returns that emerged during the Reagan Administration began from a starting point of 10.8 % unemployment, a current account surplus, and market valuations that - on the most historically reliable measures - were less than one - quarter of present levels.

The reason why valuations are so tightly correlated with 10 - 12 year returns is that extreme deviations from historical norms tend to wash out over that horizon, and because interest rate fluctuations have a much less durable impact on market valuations than investors imagine.

A beta of 1.00 indicates that the fund's returns will, on average, be as volatile as the market and move in the same direction; a beta higher than 1.00 indicates that if the market rises or falls, the fund will rise or fall respectively but to a greater degree; a beta of less than 1.00 indicates that if the market rises or falls, the fund will rise or fall to a lesser degree.

In bonds, the Market Climate remains characterized by unfavorable valuations and unfavorable yield pressures, holding the Strategic Total Return Fund to a duration of less than 1 year.

There are obvious reasons the industry has had less - than - desirable returns, including: massive over-funding of the sector, huge increases in inexperienced venture capitalists that took a decade to peter out, and the massive correction in the value of the public stock markets that closed many exit opportunities for half a decade.

VC funds haven't significantly outperformed the public markets since the late 1990s, and since 1997 less cash has been returned to VC investors than they have invested.

While there's a great deal of variation across individual market cycles, that's roughly the historical average for a 5.25 year market cycle: a 135 % gain, a 30 % loss, and a 65 % full - cycle return (about 10 % compounded annually, with the full - cycle return coming in at less than half of the bull market gain).

«If more institutional investors strove to achieve good absolute rather than relative returns, the stock market would be less prone to overvaluation and market fads would less likely be carried to excess» Seth Klarman

The one - day loss for many funds, including Vanguard Total Bond Market, iShares Core U.S. Aggregate Bond, Pimco Total Return and Metropolitan West Total Return, while less than a half a percentage point, still amounted to more than 10 percent of their current yield.

For all asset classes (but focusing on currencies), they define bad market conditions as months when the excess return on the broad value - weighted U.S. stock market is less than 1.0 standard deviation below its sample period average.

Rather than looking to the big city markets of New York and Miami, overseas investors are snapping up less risky property deals in Charlotte's stable market, but are still achieving rental returns over 9 % a year, says Torcana Director, Colin Murphy

The two most recent bear markets, strong bond returns helped offset deep declines in equities, helping the balanced portfolio incur less than half of the drawdown of an equity - only portfolio.

Google Finance reveals Vanguard managed market beating returns with less risk, as Vanguard's fund has a listed beta of.82, making it less volatile than the S&P 500 index.

FPA's Investment Approach He mentioned that his goal is to «provide equity rates of return with less risk than the market.»

Are anomaly premiums (expected winners minus losers among assets within a class, based on some asset characteristic) more or less predictable than broad market returns?

In their world, the only way to earn a return greater than the market is to take more risk, and likewise, the consequence of taking less risk than the market is earning a lower return.

Investment returns will fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth less than their original cost.

To keep afloat they can save money by running the business from home, «share» employees with other companies, offer a share of the business in return for specialist advice, as business owners work for less than market rates.

Approximately 25 - 30 portfolio stocks selected that we believe should offer potential long - term returns with less volatility than the overall securities market.

Fund managers aim to do this by a significant margin over the long - term and aim to deliver returns with less volatility (risk) than the broader UK equity market.

We believe these quality companies contain sustainable competitive advantages, creating value as profitable businesses that can, over time, provide attractive returns with less risk than the overall market.

Thanks to the innovation and creativity of fund sponsors â $» and, yes, the greed of investors â $» the return that investors received on their money was less than a third of the return offered by the stock market itself.

If your funds return less than the overall market, why are you paying a fund manager?

Yields are also higher for the S&P U.S. Issued High Yield Corporate Bond Index than for the S&P / LSTA Leveraged Loan 100 Index (6.5 % versus 5.05 %, respectively), implying that market participants are willing to hold bank loans for less of an interest return than high - yield corporate debt.

However, if we stick to the base rates on fundamentals, we get a much lesser mean reversion than we get in stock market returns.

We believe these quality companies possess sustainable competitive advantages, creating value as profitable businesses that can, over time, provide attractive returns with less risk than the overall market.

Investment returns may fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost.

These markets are no less tricky and volatile than their traditional counterparts, yet they often deliver similar returns with less risk.

Now I have another fund which is in P2P funds which is higher risk than a deposit account but then gives me a better return and is less subject to market fluctuations and it would be the place I go to for loss of job level emergencies say 6 months of salary, this takes a bit longer to access but given I have the above emergency fund I have given myself time to get the money from the P2P account.

The philosophy is based on identifying stocks that are currently trading for less than they should be worth and purchasing them in hopes the market will realize the company is undervalued and correct accordingly, giving you a return on your investment.

(Emerging markets are certainly volatile, but they have delivered annualized returns over 12 % since 1988, compared with less than 9 % for Canadian equities.)

As DALBAR studies have shown for more than three decades, most investors don't even achieve 50 % of the returns of the market, much less beat the market.

In some months, such as late 2008, VFISX has the highest 6 month trailing returns in all three portfolios; therefore, the complete portfolio could have less than three positions depending on market conditions.

Because USMV's market - like returns have come with less risk, its risk - adjusted returns (a measure of how much risk is involved in generating a security's return) have been better than 99 % of large - cap domestic equity mutual funds and ETFs since its inception.2

Investors can tailor a portfolio to their specific risk - return requirements, aiming to hold securities with betas in excess of 1 while the market is rising, and securities with betas of less than 1 when the market is falling.

It's one stop shopping for the average investor offering returns linked to the broad market, less work, lower risk than individual companies and low cost.

Unless you've parked your money in government bonds, with their guaranteed rates of return, you need to check on your investments regularly to make sure they're beating the market — and doing so more substantially and less expensively than other, similar options.

It's important to note that if you are retired during a period when the stock market returns less than its historical average, and you withdraw 8 % a year from your retirement savings as Ramsey recommends, you can deplete your retirement funds to the point that it deals a severe blow to your standard of living.

And since both types of funds — active and passive — earn market - average returns before expenses, investors who own actively managed funds typically earn 1.75 % less than those who own index funds!

While the housing market has recovered in many locations and more homeowners return to positive equity every month as values rise, there are still plenty of homeowners who are under water on their mortgages and even more who have less than five percent in home equity.

Most of the discussions I read here assume that you can get a 15 or 30 year fixed mortgage for less than 6 percent, and that you can get a high return in the stock market (10 + %), or even a high yield (5 + %) savings account.

If a company is trading for less than its book value (or has a P / B less than one), it normally tells investors one of two things: Either the market believes the asset value is overstated, or the company is earning a very poor (even negative) return on its assets.