Sentences with phrase «more volatile investments»

And some investors that are seeking stability forget that adding small amounts of more volatile investments can actually reduce volatility.
I get why you would prefer the security of bank accounts to putting your savings in more volatile investments like stocks and bonds.
The bigger point here, though, is that the more volatile the investments you own, the bigger the gain that's required to recover from losses.
While government agency - backed RMBS were not immune to the negative credit risk implications, especially as the government agencies — Federal National Mortgage Association (FNMA or Fannie Me) and Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac)-- were placed under conservatorship by the U.S. government in 2008, «private label» RMBS without government backing were clearly the more volatile investments, and they suffered losses in the underlying assets, as well as severe swings in market value.
The greater the percentage of stocks in your portfolio, the more volatile your investments will be.
If serious short - term losses would upset you enough to make you sell any stock you own, it might be good for you to avoid more volatile investments.
You may want to avoid more volatile investments such as cyclical stocks, commodities and commodity stocks, growth stocks, and high - yield bonds.
Decoupling bonds from their currency risk in Emerging Markets as well represents another favored strategy that flexible bond strategies can employ to help investors navigate a more volatile investment environment in 2015.
Decoupling bonds from their currency risk in Emerging Markets as well represents another favored strategy that flexible bond strategies can employ to help investors navigate a more volatile investment environment in 2015.
Generally speaking, the more volatile the investment and the longer the holding period, the more an investor's wealth is adversely impacted by volatility.
Historical market data shows the evidence for this relationship between risk and potential rewards: Since 1926, stocks have generated much higher compound annual returns than bonds — 10.0 % vs. 5.5 % — because stocks are a more volatile investment.

Not exact matches

Buybacks, said Aguilar, are done because that's the way companies think they can get the best return on their investment, so with a more volatile stock market and harder access to credit, spending cash on long - term growth becomes the best option.
Paul Hickey of Bespoke Investment Group discusses the market's volatile week, bitcoin and more with Courtney Reagan.
Why continue to let some «professional» broker take 1 % — 3 % off the top and then continue to listen to the endless excuses of how the market is volatile, how everyone is losing money, or better yet to just sit tight so you can lose more of your investment.
While these funds have the potential to provide high income and total returns, they are riskier and more volatile than their investment grade counterparts.
Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and than the general securities market.
Worldwide metal prices may fluctuate substantially over short periods of time, so the Fund's share price may be more volatile than other types of investments.
High yield fixed income securities are considered speculative, involve greater risk of default, and tend to be more volatile than investment grade fixed income securities.
An investment in a limited partner interest in a private equity fund is more illiquid and the returns on such investment may be more volatile than an investment in securities for which there is a more active and transparent market.
Because stocks are generally more volatile than other types of assets, your investment in a stock could be worth less if and when you decide to sell it.
Control asset companies produce more volatile returns for their shareholders than do investment companies not employing debt financing.
Compared to investment companies that focus only on large capitalization companies, the Fund's NAV may be more volatile because it also invests in medium and small capitalization companies.
A third observation from this analysis is that the ten - year forward real returns of investments made at PEs between 12 and 17 had the biggest spread between minimum and maximum returns and were therefore more volatile and less predictable.
These stocks could be amazing investments even though they were more volatile, lower quality businesses — if you were able to buy them right and sell them right.
Small - cap investment should be part of a well - balanced portfolio, however, small cap stocks are definitely more volatile than their large - cap siblings.
For instance, a recent Bloomberg report explains that tighter regulation and less risky investment on behalf of Canadian banks yields returns that are less volatile and more consistent.
The fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund's gains or losses.
Investing in currency involves additional special risks such as credit, interest rate fluctuations, derivative investment risk, and domestic and foreign inflation rates, which can be volatile and may be less liquid than other securities and more sensitive to the effect of varied economic conditions.
In this way, these start - up companies are actually far riskier investments than their more price - volatile public counterparts.
● Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments.
Bitcoin is much more volatile than a traditional investment, but it has proven itself over the long term, recently reaching all - time highs.
High Yield bonds involved greater risk of default or downgrade and are more volatile than investment grade securities, due to the speculative nature of their investments.
Investments that concentrate in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and than the general securities market.
Beta — A measurement of how risky an investment is, with 1 being neutral, above 1 being more volatile, and less than 1 being less volatile.
Foreign investments can be riskier and more volatile than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions (e.g., «Brexit»).
Investments that concentrate in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and than the general securities market.
Complementing traditional investments, Ross points out that real estate is less volatile (unlike stocks, it's not marked to market every day); provides diversification with a favorable balance of risk versus return; is favorably taxed via capital gains tax treatment and interest deductibility; generates returns similar to the stock market and «often more»; provides principal protection; a hedge against inflation and a pension - like «monthly coupon.»
Alternative investments, including commodities, involve a higher degree of risk and can be more volatile and less liquid than shares and bonds.
Over time these volatile periods in the stock market's history have «evened» out to a real «average return» of 8 %, however, unless your investment time frame is 50 or more years, you can not rely on these skewed returns with any degree of certainty.
If you push more of your portfolio into dividend - paying stocks, REITs, and MLPs, you will certainly earn more, but these investments are more volatile, which can make you lose principal.
If you've got several decades before you need that money, your risk profile can be on the high side, allowing you to put your money in more volatile, higher return investments that can be corrected over time.
EM currencies are inherently more volatile and subject to risk given they underlie jurisdictions that may be exposed to a less robust rule of law, poor institutions, political instability or corruption, low levels of investment and innovation, lack of private property laws, and / or undeveloped debt and capital markets.
Stock investments are therefore much more volatile.
Aggressive portfolios hold investments that are more volatile than value or blue chip investments.
Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and than the general securities market.
Investments in real estate are generally more protected and less volatile than stocks.
High yield bonds are more volatile than investment grade securities, and they involve a greater risk of loss (including loss of principal) from missed payments, defaults or downgrades because of their speculative nature.
But I'd be wary of venturing, as some investors seeking higher yields do, into high - yield, or junk, bond funds, as they're generally more volatile than investment - grade funds and don't hold up as well in periods of economic and market stress.
Investments in real estate investment trusts (REITS) involve special risks associated with an investment in real estate, such as limited liquidity and interest rate risks, and may be more volatile than other securities.
An investment in the Gator Focus Fund is subject to special risks including but not limited to, small and mid cap companies securities risk which is subject to the potential for increased volatility as a result of investing in securities that are more volatile compared to investments in more established companies.
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