Sentences with phrase «magnifies returns»

Mortgage REITs are a risky concept because they borrow to buy mortgages, which magnifies the returns — both up and down.
your mortgage also magnifies the returns on your recurring cash flow on a rental (positive or negative)
The appeal is that borrowing allows you to buy more securities than you'd otherwise be able to, magnifying your returns.
Key marketing leverage points (where small investments of time and money will yield magnified returns)
If you like, you could further magnify the returns by shorting house price indexes or buying default swaps on the regions we heavily target or shorting the banks that have significant exposure in those regions as we would be increasing their default rate (note — need to investigate the short aspect for legality).
In their March 2016 paper entitled «Leverage for the Long Run — A Systematic Approach to Managing Risk and Magnifying Returns in Stocks», Michael Gayed and Charles Bilello augment conventional U.S. stock market SMA timing rules by adding leverage while in equities.
In essence, we find that the secret to Buffett's success is his preference for cheap, safe, high - quality stocks combined with his consistent use of leverage to magnify returns while surviving the inevitable large absolute and relative drawdowns this entails.
«You can borrow possibly with only five percent down at approximately a four percent interest rate and buy a property that may generate at least a seven percent rate of return annually, which greatly magnifies the return on your equity invested,» says Ailion.
Limited Partner investors in Blackstone also have an outsized allocation to their real estate holdings, magnifying returns compared to the private equity firm's other asset classes.
He recognized early on that applying leverage to safe, cheap, high - quality stocks would magnify returns without the risk of fire - sale, allowing him to stick to the principles outlined above over the course of multiple economic and market cycles.
Importantly, the successful provision of information related to college choice through initiatives like ECO-C is likely to magnify the return to existing federal and state aid policies, while the return to high - cost interventions such as expanding the Pell grant program is likely to be very limited unless students possess sufficient information about college alternatives.
As you can see that leverages allow you to magnify your returns, but they can also magnify your losses if the trade goes against your prediction.
Not only can you benefit from drops by purchasing more of your favorite funds but you can also magnify your returns with dividend reinvestments.
You can also trade with borrowed money using a margin account, allowing you to potentially magnify your returns.
In theory, this is an excellent method to magnify returns (despite the risk of magnified losses).
Both methods magnify returns, right or wrong.
Leverage allows an investor to magnify their returns, shortening the time it takes to achieve a desired return.
This leverage will magnify your returns — both positive as well as negative.
ETFs let investors express a vast number of viewpoints — including if an investor expects prices to fall, or wants to magnify a return.
Finally, the buyer can leverage the purchase with mortgage financing; this may further magnify the return rate on the cash invested.

Not exact matches

When you look back on this moment in history, remember that rich valuations had not only been associated with low subsequent market returns, but also with magnified risk of deep interim price losses over shorter horizons.
Leveraged exposure magnifies the indexs performance, potentially providing higher returns over time.
But, one can certainly know this, that YHWH, the Creator, the true name, not Lord, or God «look it up» knows all, and allowed what the liars has done to this book to magnify Himself in His day of return, as He tells us in Isaiah 34 vs. 8 of the controversy of this whole thing, along with the profaning of His name in Ezekiel 36 vs. 22,23.
Warm weather and lower air density have clearly led to high - scoring games and profitable returns for over bettors, but I believed this edge would be magnified in late season games due to pitcher fatigue.
«The engineering efforts that have enabled the rovers» longevity have tremendously magnified the science return,» said Steve Squyres of Cornell University, Ithaca, N.Y., principal investigator for the rovers» science payload.
It adds to the high - demand of low - impingement elliptical devices by offering over 150 workouts that magnify your results return while giving minimum impact to your spinal column, hips, joints, and knees.
Leverage has the ability to significantly magnify your overall returns (or losses), since you are investing using borrowed money.
Use of leverage tends to magnify increases and decreases in the Fund's returns and leads to a more volatile share price.
Although the concept of compounding returns will help you magnify your profits significantly, it is also important that you consider the probability of winning in any given position that you are opening.
You have the chance to boost your returns, but trading on margin will also magnify your losses.
You can't earn a return of 5 % without taking considerable risk — and that risk is magnified when you use leverage.
In the July 2010 version of their paper entitled «Hedge Fund Predictability Under the Magnifying Glass: The Economic Value of Forecasting Individual Fund Returns», Doron Avramov, Laurent Barras and Robert Kosowski investigate whether investors can exploit the predictability of individual hedge fund rReturns», Doron Avramov, Laurent Barras and Robert Kosowski investigate whether investors can exploit the predictability of individual hedge fund returnsreturns.
Stock options and Futures contracts also use leverage to magnify your possible returns (losses).
Turning away from the financial media's obsession with the next hot thing can benefit you in many ways, especially in an overall investing climate of reduced returns that only magnifies the top - performing securities.
Leverage also refers to seeking magnified percentage returns on an investment by using borrowed funds, margin accounts or securities which require payment of only a fraction of the underlying security's value (such as rights, warrants or options).
As you can see, compounding can make a huge difference — especially when time is allowed to magnify the difference in annual returns.
Closed - End Funds Bite Back Leverage juiced returns when rates were moored; now it is magnifying losses.
It can help you increase your returns but it can also magnify your losses.
Leverage is used to amplify returns, but it has the unpleasant side effect of magnifying losses.
It won't affect the financial rate of return of course, but naming the benefit will magnify the value of what you have received.
In reality, when a trader uses leverage with the aim to maximise his returns, he is often magnifying his potential losses at the same time.
ProShares, which introduced the first short and leveraged ETFs in 2006, continues to be a leader in launching innovative new products — for two years in a row, ProShares has led the industry in attracting assets to newly launched ETFs3 and now is the fourth largest manager of ETFs in the nation.4 Since 1997, ProFunds mutual funds have provided investors with access to sophisticated investment strategies, with offerings that include funds that seek to magnify or return the inverse of index performance on a daily basis.
Debt can magnify your investment returns - by borrowing in order to have more money to invest.
Let's look at CGNR again: Its 34 % decline is magnified into a 34 % * 4/90 = 1.5 % portfolio return.
Listed investment companies also offer another potential performance advantage (vs. ETFs) for smart & somewhat contrarian investors — the opportunity to maybe buy at a significant NAV discount (when the fund / market is temporarily out - of - favour, or somewhat unknown to the average investor), and to ultimately sell at a much smaller discount or even an NAV premium — which can really magnify & enhance underlying market / fund returns!
Securities - backed lines of credit, or SBLOCs, may seem like an attractive way to access extra capital when markets are producing positive returns, but market volatility can magnify potential losses.
In addition, the stressful environment of a shelter can aggravate and magnify behavior problems, adding to the possibility that a pup or dog might be returned after being adopted.
This is magnified in Marooner's «chaos» mode, which randomly switches between mini games at a quick fire pace, starting one, and then switching to the next before the first has ended, only to return to it later after having played 2 - 3 other mini game types.
For the same consumption levels of equivalent energy, this leads to a magnified emission of CO2 due to the lower EROEI (energy return on energy invested).
Twisting this time - tested input magnifies content and scrolls through lists, and pressing it in returns home without obstructing the display.
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