Sentences with phrase «of risky assets»

That can have a temporary effect on the prices of risky assets like stocks.

The value of the risky assets falls more because many of the holders have a weak ability to hold the assets.

So if I am looking at a portfolio of risky assets, I would split each asset into two.

This action is reversed if the risk in the portfolio falls — the number of risky assets is increased.

Put it simply, in 2006 cash is king; or, if you are patient enough, short all sort of risky assets.

Fortunately, high correlations with oil since earlier this year have meant strong performance for most of these riskier assets.

Whether it is stricter regulations, negative interest rates, or fragile confidence, banks and other market participants are less than keen these days to hold large piles of risky assets.

The prices of a wide range of risky assets have been rising, despite sluggish GDP growth worldwide.

So a fair share of the risky assets we hold are in emerging markets value stocks, where we get at least some return.

This strategy resulted in rapid growth and a high concentration of risky assets.

The theoretical diversification of risky assets based on correlation measures calculated over long time periods is no longer valid.

I see market players making estimates of their future well - being, and as that estimate changes, so do their moods change, and the prices of risky assets.

Easy money is over and this implies lower prices for all sorts of risky assets, higher volatility, higher global risk aversion and more market turmoil.

Fortunately, high correlations with oil since earlier this year have meant strong performance for most of these riskier assets.

However, if the U.S. and world stock markets start to lose steam, which early clues suggest could already be the case, then safe - haven gold would benefit as money starts to flow out of the riskier asset class, equities.

Longer time horizons mean investors can benefit from higher returns of riskier assets like stocks, while weathering short - term volatility.

He recommends taking money off the table before retirement when» [In the middle of your career] you need to start bailing out of risky assets as you get closer to achieving that liability - matching portfolio — when you can «win the game» without taking so much risk.»

Valuations of risky assets are still stretched, and liquidity mismatches, leverage, and other factors could amplify asset price moves and their impact on the financial system.

Longer time horizons mean investors can benefit from higher returns of riskier assets like stocks, while weathering short - term volatility.

Market complacency, evidenced by the relative richness of risky assets, is a clear and present danger.

NEW YORK — Until the recent bout of financial - market turbulence, a variety of risky assets (including equities, government bonds, and commodities) had been rallying since last summer.

Since the 2008 - 09 global financial crisis, a broad array of risky assets, including commodities, have tended to move in lockstep during times of panic and heightened uncertainty.

Stretched valuations, high levels of uncertainty about the macroeconomic backdrop and tight correlations would seem to warrant a closer look at assets that can help offer true diversification benefits and downside protection in the event of another synchronized decline across a whole spectrum of riskier assets.

The foundation of dynamic risk management is actually fairly straightforward: if the risk within a portfolio increases, the number of risky assets in that portfolio (such as equities) is reduced.

Whoops — forgot that part of my risky assets is a put writing strategy for passive income.

Second, since capital requirements are now much more stringent both in their definition of what constitutes capital and in their coverage of risky assets, banks face higher costs for expanding their balance sheet.

Rising U.S. debt supply and the pace of the U.S. Federal Reserve's tightening, the possibility the European Central Bank's quantitative easing program is heading towards the finish line, and concerns about the credit quality of riskier asset classes restrained investors.

It may also explain why people pile into other kinds of risky assets — like initial coin offerings — despite warnings from financial experts.

Allocate the balance of the portfolio to the equally weighted 1, 2, 3, 4, 5 or 6 risky assets with the highest positive momentum (reducing the number of risky assets held if not enough have positive momentum).

External US / UK deficits allowed private sector dissaving, generating a high demand for risky assets (loans to households); and the corresponding net saving in the exporting countries was invested in the US and the UK and enabled the financing of the risky assets — the other side of the coin.

What explains the paradox of risky assets and safe havens rallying together?

The ratio of risky assets to risk - free assets here isn't equal, but I can achieve an aggressive return if I pursue one of two approaches:

Diversification will only reduce the volatility of your portfolio's returns down to the level of the total market's own volatility, but your choice of risky assets may predispose you to additional price swings.

Most of the time, they say to make it so as soon as they see you have a system using more than a few asset classes, the returns are good compared to the markets, there's a healthy amount of bonds, you're recommending small amounts of risky asset classes, you're not trading stocks / ETFs, not trying to predict the future, and you're using mutual funds in a mostly «buy and hold» fashion.

Yes, as you flooded the market with credit, the values of risky assets rose.

This protects them at the risk of making the crisis worse for everyone else as the prices of risky asset declines after liquidations.

What the data tells us Bradley stated to me that the remainder of the portfolio allocation was comprised of riskier assets, namely equities and alternatives.

(2) Allocate between 20 to 50 percent of risky assets to Canadian stocks.

In the process, because of the over-leverage allowed for high returns on equity to be generated from low returns on assets, the buyers of risky assets overpaid for their interests.

We then start to examine how diversification through combining assets, in this case a simple stock and bond mix, works to mitigate the extreme drawdowns of risky asset classes.

Constant proportion portfolio insurance (CPPI) is a trading strategy that allows an investor to maintain an exposure to the upside potential of a risky asset while providing a capital guarantee against downside risk.

There are several factors that indicate the cycle's best years are in the past, Colliers International Chief Economist Andrew Nelson wrote in the company's 2018 Outlook report, including slowing deal volume, eight consecutive months of declining commercial property prices, plateaued cap rates, a widening divide between seller asking prices and buyer bids and investors going in search of riskier assets for better returns.»

According to CAPM, investors should hold the market portfolio because it is the optimal portfolio of risky assets.

Yields on high - yield corporate bonds narrowed (centre panel) and record low government bond yields pushed up valuations of risky assets (right - hand panel).

The first result is that more financial literate households do not always take more risk but their risk exposures vary with market regimes (for example, a 1 % increase in the expected excess return of risky assets is associated with a 2 % increase in the risky share for each unit of financial literacy).

Market complacency, evidenced by the relative richness of risky assets, is a clear and present danger.

We assume monthly portfolio reformation frictions of 2 % of month - end combined values of risky assets.