Sentences with phrase «lowering equity risk»

The remaining 16 % is going to be invested in short term bonds with the goal of lowering equity risk.

That translates into a low equity risk premium.

Chapter 15 — Implications for Companies advises companies on adjusting their decision - making to an era of international projects and a lower equity risk premium.

In fact, only a permanently low equity risk premium can justify the high stock prices we now enjoy.

Not exact matches

The minutes of the Fed's June meeting noted that «some participants suggested that increased risk tolerance among investors might be contributing to elevated asset prices more broadly; a few participants expressed concern that subdued market volatility, coupled with a low equity premium, could lead to a build - up of risks to financial stability.»

Asia and Latin America are not risk - free, but «there seems to be sense in buying equities in these regions on similar or lower valuations than their counterparts in the developed world given that dividend growth is likely to be superior, given higher economic growth potential.»

«This is typical of a late cycle expansion which is another reason why multiples will be lower as higher volatility typically demands a higher equity risk premium.

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If equities in one part of the world are overvalued, diversification helps ensure that lower valuations in other parts of the world help offset any potential risks and even out portfolio returns over time.

It's a (mostly) short term, higher risk, higher reward place to invest cash that has a low correlation with the stock market, but is far more passive than buying and managing properties, has more opportunity for diversification than private placements (minimums of 5 - 10K, rather than 100K), and most of the equity offerings (and all of the debt offerings) provide monthly or quarterly incomes.

We prefer to take economic risk through equities rather than credit against a backdrop of low absolute yields, tights spreads and rising rates.

The fund I've invested in allows me to participate in the venture capital and private equity space in a lower risk way with a target 20 % + expected return profile per annum and a blue - sky target of 30 % +.

Elsewhere in forex markets, it's a relatively calm day, with a slight correction in the risk - off trade that we have been monitoring for weeks, as the yen is a tad lower today against all of its major peers, while the Dollar couldn't gain on risk - on currencies, despite the equity weakness.

There are real risks — from China to signs of overvaluation in parts of US equity markets, from build - ups in leverage after a long period of low rates and tranquil markets to a highly disordered geopolitical situation in which US credibility has fallen off sharply.

With equity returns likely to moderate and volatility set to rise, investors face a difficult choice: Accept lower returns, or take on greater risk.

Since ETFs come in many flavors of asset classes, those with a low correlation to the direction of the US equity markets (commodity, currency, fixed income, etc.) sometimes present low - risk swing trade setups that are largely independent of broad market trend.

The bottom line: Investors are being offered better returns for taking risk in the low - return landscape, and a portfolio allocation to a broader, diversified mix of assets — including alternatives, global equities and emerging market (EM) assets — can potentially help improve returns, in our view.

Put simply, even taking account of current interest rate levels, and even assuming that stocks should be priced to deliver commensurately lower long - term returns, we currently estimate that the S&P 500 is about 2.8 times the level at which equities would provide an appropriate risk premium relative to bonds.

But this masks the reality that equities — and by extension other risk assets — still look attractive taking into account that bond yields are likely to stay historically low.

This poses a dilemma for investors: Accept lower returns or dial up risk by taking more equity, credit and interest rate exposure.

Finally, Chinese stocks (measured by the Shanghai Stock Exchange Composite Index) have trailed their Brazilian counterparts (measured by the Ibovespa Index) and moved in lock step with Russian equities (represented by the MICEX Index) since late January, based on Bloomberg data, and their low valuations are poised to potentially rise in a risk - on environment.

For example, because the BlackRock Total Return Fund has a low correlation to the S&P 500, equity risk in a fixed income portfolio has the potential to be reduced through the use of the fund.

None of the factors consistently generated positive performance during recent market crashes However, almost any factor exposure would have increased the risk - return ratio of an equity - centric portfolio Low Volatility and Mean - Reversion would have been most beneficial, Momentum least INTRODUCTION A

In the final analysis, we believe investors are being paid to take equity risk against the backdrop of low rates.

Yet, more than $ 2 trillion remains in the hands of financial - engineering strategies pegged to low volatility, including volatility - control funds, risk parity, risk premia, and long - equity - trend following.

While it's true that interest rates are depressed, apparently setting a low «bar» for equities, an additional question one should ask is whether interest rates themselves are «fair» in the sense of being adequate compensation for long - horizon risks.

In the final analysis, however, we believe investors are being paid to take equity risk against the backdrop of low rates.

What we're seeing here — make no mistake about it — is not a rational, justified, quantifiable response to lower interest rates, but rather a historic compression of risk premiums across every risky asset class, particularly equities, leveraged loans, and junk bonds.

Note that Marks uses the term «low - risk» here in a relativistic sense — i.e., relative to equity returns generally.

From the perspective of someone interested in making investments with 20 + year holding periods in mind, you need to be careful of owning banks because of the debt to equity levels involved in the investment, you need to be wary of technology companies because they must constantly be innovating to remain profitable and relevant (unlike, say, Hershey, which could stick with its business model of selling chocolate bars for the next century), and retail stocks which are always subject to the risk of a new low - cost carrier arriving on the block.

Some are more risk - averse and will feel more comfortable with a lower equity allocation and a correspondingly lower return.

Medium Risk — Growth (M / GRW) Lower to average risk equities of companies with sound financials, consistent earnings growth, the potential for long - term price appreciation, a potential dividend yield, and / or share repurchase progRisk — Growth (M / GRW) Lower to average risk equities of companies with sound financials, consistent earnings growth, the potential for long - term price appreciation, a potential dividend yield, and / or share repurchase progrisk equities of companies with sound financials, consistent earnings growth, the potential for long - term price appreciation, a potential dividend yield, and / or share repurchase program.

We see central banks nearing the limits of extraordinary monetary easing, low returns across most asset classes as well as higher equity and bond volatility amid looming political risks and Federal Reserve (Fed) tightening.

Taking on more equity risk when the expected future returns are lower than in the past and downside risks higher makes little sense to me.

The Oakmark Equity and Income Fund invests in medium - and lower - quality debt securities that have higher yield potential but present greater investment and credit risk than higher - quality securities, which may result in greater share price volatility.

We prefer to take risk in equities rather than credit, given tight credit spreads, low yields and a maturing cycle.

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.

These low rates have encouraged investors in recent months to pile on risk, taking U.S. equities markets to record highs earlier this year despite an economy that's still being slowed by relatively high unemployment, huge debt levels, and tighter government spending.

Most of our banks earn a mid-teens or better return on equity (ROE), but with lower than average credit risk.

By design, the Fed wished to push investors into higher risk assets such as equities and real estate by lowering the return on safe bond investments.

After the market crash of 2008 - 2009, it's easy to see how advisors and plan sponsors could be drawn to «Defensive Equity» or «Low Risk» strategies as ways to protect against future drawdowns.

By purchasing these companies after a price decline, we find we are able to control risk in the portfolio as these investments often have less downside while offering a decent potential return.The U.S. Equity Fund seeks to invest in companies with a lower Price to Book Ratio, lower Price to Earnings Ratio and higher Dividend Yield than the S&P 500 index.

As corporate Japan has started to take advantage of recovering risk appetite, low yields and yen strength to invest abroad, opinions on valuation of Japanese overseas acquisitions among listed firms have now begun to diverge substantially between foreign investors in listed Japanese stock and private equity / venture capitalists.

The disappearance of low - risk yield opportunities in fixed income markets has subsequently forced investors out the risk curve and into traditionally defensive equity sectors with reasonable payouts.

Q: In spite of different risk factors, equity - market volatility remains near historic lows.

We don't believe a low growth world will be less susceptible to recession or credit strains, so we also don't believe that equity risk premiums should be razor thin.

As the investor approaches retirement, they shift equities to the MSCI USA Minimum Volatility Index, designed to match the market return at lower risk.

Structurally lower yields underpin our positive view on equities and other risk assets, and we favor equities overall to credit.

(James J. Barta and Michael G. Allen); «Ideas and Programs To Assist in the Untracking of American Schools» (Howard D. Hill); «Providing Equity for All: Meeting the Needs of High - Ability Students» (Sally M. Reis); «Promoting Gifted Behavior in an Untracked Middle School Setting» (Thomas O. Erb et al.); «Untracking Your Middle School: Nine Tentative Steps toward Long - Term Success» (Paul S. George); «In the Meantime: Using a Dialectical Approach To Raise Levels of Intellectual Stimulation and Inquiry in Low - Track Classes» (Barbara G. Blackwell); «Synthesis of Research on Cooperative Learning» (Robert E. Slavin); «Incorporating Cooperation: Its Effects on Instruction» (Harbison Pool et al.); «Improving All Students» Achievement: Teaching Cognitive and Metacognitive Thinking Strategies» (Robert W. Warkentin and Dorothy A. Battle); «Integrating Diverse Learning Styles» (Dan W. Rea); «Reintegrating Schools for Success: Untracking across the United States» (Anne Wheelock); «Creatinga Nontraditional School in a Traditional Community» (Nancy B. Norton and Charlotte A. Jones); «Ungrouping Our Way: A Teacher's Story» (Daphrene Kathryn Sheppard); «Educating All Our Students: Success in Serving At - Risk Youth» (Edward B. Strauser and John J. Hobe); «Technology Education: A New Application of the Principles of Untracking at the Secondary Level» (N. Creighton Alexander); «Tracking and Research - Based Decisions: A Georgia School System's Dilemma» (Jane A. Page and Fred M. Page, Jr.); and «A Call to Action: The Time Has Come To Move beyond Tracking» (Harbison Pool and Jane A. Page).

You will need to pick each individual project to invest in and you might consider splitting your investment between debt financing (less risk but lower potential return) or equity financing (higher potential return but more risk).