The odds of at least one large bad streak of returns on risky assets during retirement is high, and few retirees will build up a buffer
of slack assets to prepare for that.
I know that companies keep themselves slim to avoid takeovers, A large amount
of slack assets invites others to come in and buy the assets to manage them.
If buybacks ceased, companies might have a lot
of slack assets on hand.
Not exact matches
* Information efficiency * Economic
slack * Contained inflation * Coordinated Central Banks * The growth
of China and India and their continued purchasing
of US debt * The growing perception that US dollar denominated
assets are the safest
assets in the world * A 30 + year trend
of declining rates that is telling us we're more adept at managing inflation with each new cycle that passes
* Information efficiency * Economic
slack * Coordinated central banks * The dominance
of China and India and their increased purchase
of US debt * USD and US
assets as a continued safe haven * Rates have been going down for 30 + years in a row, the trend is telling us we're more adept at managing inflation with each new cycle
In the first part
of this irregular series, I tried to point out the value
of having some
slack assets should attractive opportunities present themselves.
The only way to avoid runs on the company is to hold enough
slack assets that you know you will be alright in the worst
of times, meaning a depression scenario, or, scenarios where nothing trades.
In order for tail risk to be mitigated fairly, someone must keep a supply
of slack high quality
assets.
People are capable
of budgeting, so give them a fixed or slowly rising income to live off
of, while investing their
slack assets to cover future increases in costs.
To return to a concept I discussed in the first column I wrote for RealMoney, Valuing Financial
Slack in the Steel Sector, banks with a high degree of leverage relative to the overall riskiness of their assets and liabilities possess little in the way of financial s
Slack in the Steel Sector, banks with a high degree
of leverage relative to the overall riskiness
of their
assets and liabilities possess little in the way
of financial
slackslack.
Quick to pick up the
slack, Hong Kong - registered cryptocurrency exchange Bitfinex announced today that it will immediately list the NEO token, the native
asset of the Neo blockchain ecosystem, which
of course is a Mainland China developed platform and the country's most popular and internationally known.