The availability of indexes revolutionizes our understanding
of stock risk.
The second type
of stock risk comes from the business.
Not exact matches
Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability
of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost
of accommodating, announced increases in the build rates
of certain aircraft; 6) the effect on aircraft demand and build rates
of changing customer preferences for business aircraft, including the effect
of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result
of global economic uncertainty or otherwise; 8) the effect
of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution
of key milestones such as the receipt
of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation
of our announced acquisition
of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability
of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the
risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production
of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts
of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak
of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact
of future discount rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition
of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect
of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect
of changes in tax law, such as the effect
of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations
of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect
of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability
of raw materials and purchased components; 23) our ability to recruit and retain a critical mass
of highly - skilled employees and our relationships with the unions representing many
of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment
of interest on, and principal
of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness
of any interest rate hedging programs; 28) the effectiveness
of our internal control over financial reporting; 29) the outcome or impact
of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition
of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result
of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the
risks of doing business internationally, including fluctuations in foreign current exchange rates, impositions
of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated
stock repurchase plan, among other things.
If interest rates rise and push that
risk - free rate
of return higher, then those dividend
stocks and high - yield bonds are vulnerable.
Famed investors Warren Buffett, Mark Cuban and Tony Robbins all suggest starting with index funds, which hold every
stock in an index, offer low turnover rates, attendant fees and tax bills, and fluctuate with the market to eliminate the
risk of picking individual
stocks.
«We do think we're due for a correction in U.S.
stocks [and] a key
risk is lack
of policy follow - through,» he said.
But at the core we've had a backdrop
of solid growth and inflation is contained, and I think the
risk for
stocks is if that narrative does shift towards one where it's slowing growth and rising inflation.
After a nine - year bull run in
stock markets, many analysts consider British and European companies to be close to peak values, ramping up the
risk of over-priced purchases.
PÄRSON: For all the tech companies that come to market with lots
of anticipation and a well - know brand, there's always a
risk that the
stock will shoot to the stars and have trouble to match that with their fundamentals.
«The path
of least resistance for U.S.
stocks is higher,» hedge fund manager Bill Miller says, noting the greatest market
risk is political.
Prior to founding Orcam, Mr. Roche ran a private investment partnership in which he generated substantial alpha (high
risk adjusted returns) with no negative 12 month periods during one
of the most turbulent periods in
stock market history.
While investors will have to find
stocks with higher yields, pay more for them and take on more
risk in bonds, the biggest change in a permanently low - rate world is that people will need to set aside more
of every paycheque if they want to keep the same goal for retirement income.
«I'm not going to be dismissive
of the
risks, but I think markets have priced them in and if anything as we look at the fundamentals
of stock markets around the world, the fundamentals
of European equities right now are I think significantly better than they are for the United States,» said the managing partner
of Triogem Asset Management and global investing expert on CNBC's «Fast Money.»
Comments: «In 2013, it will likely be the change in valuation that drives most
of the performance
of stocks, and the sentiment shift and willingness to take on
risk reflected in that movement will be meaningful for bonds as well.
European
stocks closed higher on Monday afternoon after senior U.S. officials sought to play down
risks of a military conflict with North Korea.
But Glencore, under London
Stock Exchange reporting obligations, said it would only contribute 300 million euros in equity (taking a tiny equity interest
of 0.54 %, and even that only «indirectly»), while the rest
of the money was provided by «QIA and by non-recourse bank financing,» the latter being a loan that effectively insulates Glencore against most
of the
risks of owning Rosneft shares.
Because bond prices tend to move in the opposite direction
of stock prices, you can also buy bond funds to further balance the
risk of those
stock funds.
Kostin said that these correlations are «mean - reverting» and are likely to fall given the idiosyncratic impact
of policy
risks, adding that equities within the consumer discretionary and health care sectors offer the best
stock - picking opportunities.
«If the fall in the
stock market continues, that suggests a higher
risk of recession, which can't be good for small businesses and startups.»
It works as advertised, but the prices are marked up, and customers run the
risk of not being able to get what they want because the store is out
of stock.
Wall Street
stock futures are lower again this morning, with markets finally taking on board the
risks of a Greek default and / or exit from the Eurozone.
And you should be taking
risks, investing the vast majority
of your long - term savings — 70 % to 80 %, at this age — in
stocks and
stock mutual funds.
He also listed 25 tech
stocks that have «underperformed fundamental
risk» during Facebook's plunge (in order
of heightened correlation): JNPR, GLW, AMD, QCOM, CSCO, HPQ, KLAC, EA, CDNS, NVDA, PAYX, IPGP, QRVO, TTWO, SNPS, GOOGL, ANSS, EBAY, TEL, NFLX, WDC, WU, GPN, BKNG, XRX.
The «old fashioned»
risk - off environment that we witnessed at the start
of the week — with
stocks and bonds moving in opposite directions — seems to have subsided.
Bonds remain the most important asset to diversify the
risk of owning
stocks.
Experienced investors Warren Buffett, Mark Cuban and Tony Robbins suggest beginning with index funds, which hold every
stock in an index, offer low turnover rates, attendant fees and tax bills, and fluctuate with the market to eliminate the
risk of picking individual
stocks.
This is why many financial advisors recommend people take steps, such as diversifying their portfolios and getting out
of the
stock market, to limit their
risk late in the game.
That means they'll get liquid, which is particularly meaningful for early - stage employees who take the
risk of working for a startup and receive
stock options in lieu
of the higher pay and greater security available at more mature companies.
High - beta
stocks are simply the shares
of companies whose
stocks trade with above - average volatility — and like the twin peaks
of a two - humped financial camel, these
stocks carry both above - average
risk and, potentially, above - average reward.
The executive explained the worth
of knowing what an individual investor wants based on what he needs out
of a
stock and the
risks he is willing to take while investing.
What's more, to dampen
risk, many investors will want a balanced portfolio
of stocks and bonds; the classic mix is 60 % equities and 40 % fixed income.
Such
risks, uncertainties and other factors include, without limitation: (1) the effect
of economic conditions in the industries and markets in which United Technologies and Rockwell Collins operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels
of end market demand in construction and in both the commercial and defense segments
of the aerospace industry, levels
of air travel, financial condition
of commercial airlines, the impact
of weather conditions and natural disasters and the financial condition
of our customers and suppliers; (2) challenges in the development, production, delivery, support, performance and realization
of the anticipated benefits
of advanced technologies and new products and services; (3) the scope, nature, impact or timing
of acquisition and divestiture or restructuring activity, including the pending acquisition
of Rockwell Collins, including among other things integration
of acquired businesses into United Technologies» existing businesses and realization
of synergies and opportunities for growth and innovation; (4) future timing and levels
of indebtedness, including indebtedness expected to be incurred by United Technologies in connection with the pending Rockwell Collins acquisition, and capital spending and research and development spending, including in connection with the pending Rockwell Collins acquisition; (5) future availability
of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope
of future repurchases
of United Technologies» common
stock, which may be suspended at any time due to various factors, including market conditions and the level
of other investing activities and uses
of cash, including in connection with the proposed acquisition
of Rockwell; (7) delays and disruption in delivery
of materials and services from suppliers; (8) company and customer - directed cost reduction efforts and restructuring costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits
of organizational changes; (11) the anticipated benefits
of diversification and balance
of operations across product lines, regions and industries; (12) the outcome
of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact
of the negotiation
of collective bargaining agreements and labor disputes; (15) the effect
of changes in political conditions in the U.S. and other countries in which United Technologies and Rockwell Collins operate, including the effect
of changes in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general market conditions, global trade policies and currency exchange rates in the near term and beyond; (16) the effect
of changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act
of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations in the U.S. and other countries in which United Technologies and Rockwell Collins operate; (17) the ability
of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the
risk that such approvals may result in the imposition
of conditions that could adversely affect the combined company or the expected benefits
of the merger) and to satisfy the other conditions to the closing
of the pending acquisition on a timely basis or at all; (18) the occurrence
of events that may give rise to a right
of one or both
of United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee
of $ 695 million to United Technologies or $ 50 million
of expense reimbursement; (19) negative effects
of the announcement or the completion
of the merger on the market price
of United Technologies» and / or Rockwell Collins» common
stock and / or on their respective financial performance; (20)
risks related to Rockwell Collins and United Technologies being restricted in their operation
of their businesses while the merger agreement is in effect; (21)
risks relating to the value
of the United Technologies» shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22)
risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23)
risks associated with merger - related litigation or appraisal proceedings; and (24) the ability
of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel.
The market chaos
of the past four years has left them
risk averse and consumed by short - term
stock volatility.
Garnering less enthusiasm were considerations such as asset allocation strategy (balancing an investment portfolio to take into account goals,
risk tolerance and length
of time), with a mean
of 4.7, and understanding price - earning ratios for traded
stock, which saw a mean
of 4.3.
With employee
stock options, the period
of undue rewards has ended, and the period
of intolerable
risk is about to begin.
Russian
stocks edged higher as they shrugged off the
risk of possible new sanctions from a newly published U.S. list
of oligarchs close to the Kremlin.
And cracks have begun to appear north
of the 49th parallel; GMP Securities analyst Michael Urlocker downgraded Research In Motion on April 21, saying it «
risked becoming a value trap — a
stock that looks cheap but isn't because its prospects are diminishing.»
«The burden
of proof is greater for a focused fund, as it's trickier to balance the
risks in a 20 -
stock portfolio than a 90 -
stock one,» he says.
Because this type
of fund ebbs and flows with the market, it stays relatively constant and avoids the
risk that comes with picking individual
stocks.
«Even in the face
of an impending competitive entry in pharmacy by Amazon, we find the
risk - reward on the
stock favorable, especially if CVS is able to consummate the reported merger with Aetna.»
Pamela investigated more than 450 financial strategies seeking an alternative to the
risk and volatility
of stocks and other investments, which led her to a time - tested, predictable method
of growing wealth now used by more than 500,000 Americans.
Buffett says an index fund is a way to avoid the
risk of picking individual
stocks.
Experienced investors Warren Buffett, Mark Cuban and Tony Robbins suggest you start with index funds, which offer low turnover rates, attendant fees and tax bills, and fluctuate with the market to eliminate the
risk of picking individual
stocks.
The four conglomerates originated in different sectors, but their underlying business model is the same: cultivate powerful allies in the Communist Party; use those relationships to win regulatory and property concessions; gather investment from friends, family and other proxies
of party elites into a murky, unregulated private holding company; borrow heavily from state - owed banks and other sources to finance prodigious growth plans; invest as aggressively as possible in
stock and property overseas as a hedge against slower growth in China and the
risk of a weaker Chinese currency.
Buying single
stocks in search
of the next unicorn is certainly more fun than a diversified low - cost investment strategy, but trying to win big comes with a lot
of unnecessary
risks and questionable rewards.
Given the potential opportunity cost associated with avoiding the
stock market — which could be as much as $ 3.3 million over 40 years, according to NerdWallet — as well as the benefits
of compound interest over four decades, the bigger
risk may be not investing at all.
For bonds this means issues that are not at
risk of defaulting on a payment; for
stocks a dividend is essential, and not one at
risk of a cut, or one that fluctuates through good times and bad.
A cut Wednesday would leave the benchmark rate near its effective floor, reducing the central bank's flexibility to deal with the elevated
risk of financial turmoil from Europe's vexed relationship with Greece or China's
stock - market bubble.
'' [But] with the
stock at 30 times 2020 earnings, with the upside coming from a glutted market,» he continued, «we think the
risk - reward in this, given where other LNG plays are in Australia and elsewhere, is just completely out -
of - whack.»
And why torture yourself with the incessant waves
of the
stock market when you can find an investment where you
risk little, but still make a lot?