Sentences with phrase «low risk assets»

As for liquidity, having 5 - 10 % in low risk assets is the way to go.
As such it is not surprising that bond prices have fallen, which results in higher bond yields, lifting returns for bond purchasers on this very low risk asset class.
So as the trend is already pointing to, expect lower risk assets at first, lower bond yields on a flight to quality but then higher yields once his spending plans are digested and an equity market that might at some point benefit from reflationary policies but with greater risks (lower trade and global openness) and higher volatility.
Eventually a liquidity crisis hits, and those levering up low risk assets get hosed.
Although Principal started its life as an insurer and the stock market values it as such, the majority of its earnings now come from higher return and lower risk asset management and administration services.
Adequately diversify with enough low risk assets (i.e. bonds).
In the U.S. those further benefits crucially flowed through the wealth effect channel: substitution of lower risk assets such as bank deposits and Treasuries for high yield bonds and equities led to price increases in those risky assets.
When LINE started out they were buying long lived low risk assets and growing the dividend and earnings by arbitraging the contango in the 5 year strip against the purchase price of the long lived asset.
Most advisors recommend using a combination of risky and risk - free assets, or at least using low risk assets (like high quality short - term bond funds) to reduce the risk of your portfolio to a level that's appropriate for you.
If a child is going to be tapping the RESP for her education, it should hold relatively low risk assets.
We investigate these questions and come to the conclusion that keeping it simple is probably the best solution — dump «risk - off» assets into truly low risk assets like cash or t - bills.
This wouldn't be as catastrophic as the mortgage crisis, but it could have an exaggerated affect on retirement incomes for the elderly as they are generally advised to invest in lower risk assets.
Since the start of this decade the rate of growth of what was perceived to be low risk assets at many banks, was significantly higher than the rate of growth of capital, a trend that played a great part in the collapse of many financial institutions.
I don't agree with the idea of levering up low risk assets.
Bonds are considered a low risk asset, but generally pay a relatively low return compared to stocks.
They then compare this to the yield you could get from the lowest risk asset — a government bond.
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).
He defines market timing as being 100 % in a risky asset or 100 % in a low risk asset such as cash.
Fixed Annuity: An annuity account that guarantees a fixed rate of return because premiums are invested in low risk assets.
Many articles I've read claim that the exact %'s aren't important, but rather the focus of maintaining a diversified allocation across a broad range of funds, keeping the «bucket strategy» in mind (the closer to the date you'll need the money, the lower risk the asset class).
You're taught in financial class that high risk assets have higher returns than low risk assets, simply because no one in their right mind would invest in a high risk game without the prospect of commensurately high returns.
Having some of your investments in low risk assets (such as interest - bearing deposits) that you can draw money from when markets are performing badly
Just because you are down doesn't mean you should sell or change to lower risk assets.
The main feature of these funds is that investors are automatically switched from high risk to low risk assets as retirement approaches.
Fixed Annuity: An annuity account that guarantees a fixed rate of return because premiums are invested in low risk assets.
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