Sentences with phrase «of return over the long term»

These warnings often sound like this: The fees that you pay to invest your money could take a huge bite out of your returns over the long term, so watch them closely.

Clearly not all consumers are going to buy into the idea of an 8 % rate of return over the long term.

These warnings often sound like this: The fees that you pay to invest your money could take a huge bite out of your returns over the long term, so watch them closely.

However, from a mindful perspective, it feels like nothing much is lost by taking a reasonable chance of suffering a 41 % draw down instead of a 32 % drawdown, and something is clearly gained by having a good chance of an added percent or so of return over the long term.

Not exact matches

The payoff: Risk doesn't guarantee higher average returns, but it makes them more likely over the life of a long - term investment.

Quite simply, it is the returns for the shareholders of that company over the long term.

«As a long - term value investor, we remain cautious and recognise that to generate good real returns over time, we have to be prepared for periods of underperformance relative to the market indices, some even for a stretch of several years.»

Investors should also take note that poor years — those in the bottom quartile of returns — tended to be worse when starting valuations were more elevated over the long - term average.

Challenger Managed investments general manger Martin Ashe said that, not only had there been a demand from clients for a fund of this type, but that the company considered socially responsive companies would post attractive returns for shareholders over the longer term.

While past performance is no guarantee of future results, historical returns consistently show that a well - diversified stock portfolio can be the most rewarding over the long term.

One - third of performance share awards, which make up 50 % of long - term incentive compensation, are tied to average return on invested capital over a three - year period.

The ultimate ability of a company to generate returns for its long - term owners over many decades is going to be determined by the return on capital it produces.

In related news, John Bogle, founder of Vanguard, told Bloomberg in a separate interview he agreed with Gross that investors should expect lower long - term returns than average returns produced over the last century.

By investing in a diverse pool of assets, it should collectively lower your risk yet stabilize your returns over the long term.

So while there could be one or even five year periods where longer maturity bonds perform fairly well from these yield levels, over the long - term they're likely to be a poor investment in terms of earning a decent return over the rate of inflation.

Fairfax seeks to differentiate itself by combining disciplined underwriting with the investment of its assets on a total return basis, which Fairfax believes provides above - average returns over the long - term.

One of my astute readers, named Jim, wondered how far out of whack the returns can get over any one year period from this long - term trendline.

The higher the price an investor pays for that expected stream of cash flows today, the lower the return that an investor should expect over the long - term.

Cash alternatives, such as money market funds, typically offer lower rates of return than longer - term equity or fixed - income securities and may not keep pace with inflation over extended periods of time.

Although supply has returned to the market over the short term — due to a combination of increased production from US shale producers and the easy availability of capital via debt and equity markets — I'm expecting supply growth to moderate over the long term as capital becomes more expensive and less available to marginal energy producers.

It aims to deliver these returns with a lower level of volatility than the broader Australian stock market over the medium to long term.

From record - breaking stock market returns to falling unemployment, the U.S. has no shortage of positive economic indicators, and the majority of investors say they feel confident about achieving both their short - and long - term goals, according to the latest «Morgan Stanley Investor Pulse Poll,» which surveyed more than 1,200 investors age 25 to 75 with over $ 100,000 in assets.

While valuations drive long - term returns, the primary driver of market returns over shorter portions of the market cycle is the attitude of investors toward risk, as indicated by the uniformity or divergence of market internals.

Furthermore, it seeks to achieve these returns with a lower level of volatility than the broader Australian stock market over the medium to long term in order to smooth returns for investors.

In the face of speculative noise, the long - term returns from a proper discounting approach may not capture as much speculative return as might be possible, but over time, many of those speculative swings tend to wash out anyway.

That difference may be positive or negative and therefore represents our largest source of risk, but over time, it has also represented the primary source of long - term Fund returns.

The essential thing to understand about valuations is that while they are highly reliable measures of prospective long - term market returns (particularly over 10 - 12 year horizons), and of potential downside risk over the completion of any market cycle, valuations are also nearly useless over shorter segments of the market cycle.

Valuations are the primary driver of long - term returns, and the risk - preferences of investors — as conveyed by the uniformity or divergence of market action across a broad range of individual stocks, industries, sectors and security types (including credit)-- drive returns over shorter portions of the market cycle.

While long - term market returns are driven almost exclusively by valuations, investment returns over shorter segments of the market cycle are highly dependent on investor psychology, particularly the inclination of investors toward speculation or risk - aversion.

Estimates of prospective long - term returns for the S&P 500 reflect our standard valuation methodology, focusing on the relationship between current market prices and earnings, dividends and other fundamentals, adjusted for variability over the economic cycle (see for example Investment, Speculation, Valuation, and Tinker Bell, The Likely Range of Market Returns in the Coming Decade and Valuing the S&P 500 Using Forward Operating Earreturns for the S&P 500 reflect our standard valuation methodology, focusing on the relationship between current market prices and earnings, dividends and other fundamentals, adjusted for variability over the economic cycle (see for example Investment, Speculation, Valuation, and Tinker Bell, The Likely Range of Market Returns in the Coming Decade and Valuing the S&P 500 Using Forward Operating EarReturns in the Coming Decade and Valuing the S&P 500 Using Forward Operating Earnings).

The idea is that you want to hold enough stocks to earn the returns you'll need to grow your nest egg over the long - term, but also enough in bonds to provide some downside protection so you don't bail out of equities in a severe downturn.

As you become a more sophisticated investor the target date fund might not make as much sense to you since you can get smaller incremental investment returns investing your IRA in a mixture of low cost index funds — which have lower fees over the long term.

Put simply, valuations have enormous implications for long - term investment returns, and for prospective market losses (or gains) over the completion of any market cycle, especially those that feature historically extreme valuation peaks (or troughs).

We can further confirm the conclusion of «stocks over bonds» for investing in most inflation periods by looking at the real returns of long - term treasury bonds versus the total U.S. stock market starting at the unprecedented and long - lived bond bull market starting in 1982.

Since the inception of the Fund (as well, of course, in long - term historical tests), our present approach to risk management has both added to returns and reduced volatility - not necessarily in any short period, but over the complete market cycle.

This leaves roughly 1.4 % of historical long - term returns which can be attributed to past expansion in the Price / Earnings multiple (i.e. over the past 50 years, prices have grown somewhat faster than the 5.7 % average rate of earnings growth).

Based on the Dividend Discount Model (DDM) with a 10 % discount rate (the target rate of return), if the company grows the dividend by an average of 7 % per year for the long term, then the fair price is over $ 90, compared to the current stock price of only about $ 83.

Still, there is emphatically no investment merit in long - term bonds, in the sense that by definition, a long - term investment in 10 - year Treasury securities will lock in a total return of less than 3.4 % over the coming decade.

The truth is that dividends aren't just a component of the market's total return over the long term; they're the main component.

Since total return is comprised of income (via dividends or distributions) and capital gain, with the former counting much more over the long term, the case for this stock having a great 2018 is certainly already there based on that higher - than - average yield.

Investing may earn you more based on oft - quoted long term averages but, consider this, if the market tanks by 50 % in one year, it would take over 7 years of so called «average stock market returns of 10 %» to return to the same position you were in just prior to the loss, and that is not even factoring in inflation.

Long - term corporate bonds, those issued by some of the most stable companies, have provided a 7.4 % return annually over the last decade.

As such, we encourage the Committee to also devote time and attention to several issues that will help ensure the long - term stability of the individual market, including: Section 1332 waivers under the ACA; long - term stability funding; limiting third - party premium payments; and returning to the states more regulatory authority over the individual and small group markets.

As the value of the digital currency swings over a period of time, the potential for returns in the short - as well as the long - term is immense.

However, the combination of smart capital management and a uniquely diverse product portfolio (spanning medical device sales, pharmaceuticals, and consumer products) has ensured that the healthcare titan's returns trounced the broader market over the long term.

As we ring in a new year, we believe we have built a portfolio of high quality companies that will provide our shareholders with attractive returns over the long term.

The bottom line: Berkshire's business has transformed over the years, but remains focused on long - term return and the efficient use of capital.

Over the next 10 years, we think U.S. stock returns will be below our long - term range of 6 % to 8 %.

A diversified portfolio may not make the highest returns during a period of strong optimism but, over the long term, diversified allocations can mitigate some of the volatility that a more concentrated portfolio typically reflects.

At present, investors have no reasonable incentive at all to «lock in» the prospective returns implied by current prices of stocks or long - term bonds (though we suspect that 10 - year Treasuries may benefit over a short horizon due to continued economic risks and still - unresolved debt concerns in Europe, which has already entered an economic downturn).