Sentences with phrase «offset stock risk»
Instead of looking for products that can offset stock risk, most investors would be better served by building safer portfolios.
http://www.ibonds.info/ Not exact matches
Main goals: gaining a moderate amount of earnings in exchange for a moderate amount of risk; offsetting the larger risk of stocks.
With fears of a richly - priced stock market, they looked to U.S. government bonds (US$ 8.2 billion) to offset potential equity risks.
Bond funds can play an important role in your investment strategy by helping to deliver income, offset some of the stock market risk in your portfolio, and preserve your savings.
Since you earn this income upfront, it offsets some of the downside risk in the stock by reducing your cost basis.
The short - term market risks of owning stocks can be offset by also owning bonds.
The bond portion of the fund helps offset the risks associated with the stock portion — providing you with a «balanced» investment.
By finding a combination of stocks whose swings in value offset one another and that will provide decent returns, followers of modern portfolio theory will minimize risk and maximize reward.
While it remains unknown to most investors, it is in fact safer than outright stock ownership because the investor's downside risk is offset by premium income received for selling the call provision.
The expense ratio could eat up every bit of a fund's yield, or the manager might decide to gun for higher - yielding (and often higher - risk) stocks to offset the fund's built - in expense disadvantage.
With fears of a richly - priced stock market, they looked to U.S. government bonds (US$ 8.2 billion) to offset potential equity risks.
This is reasonable if not great return, but Bonds continue to have other nice properties like relatively low risk and diversification of stock portfolios (the «offset [ing] losses» you mention in the OP).
I do not advocate leveraging the company to buy back stock for two reasons: First, higher return comes with higher risk, thus possibly putting downward pressure on a company's P / E and offsetting any benefits from a share buyback.
While it remains unknown to most investors, it is in fact safer than outright stock ownership because the investor's downside risk is offset by premium income received for selling the call -LSB-...]