Sentences with phrase «only risky asset»

Not exact matches

However, it's only risky on assets you have no control over or when you over leverage without looking at the cash flow closely after debt service.

There are no magical tailwinds you can bank on, and odds are that shifting to risky assets — the equivalent of leaning on the throttle — will only leave you further behind.

Only after these basics are in place would he add risky assets, such as U.S. and international stocks, commodities, and real estate stocks.

Instead, focus only on how much you want in equities overall compared to less risky asset classes and on collecting the equity premium.

With fully two - thirds of its money invested in domestic and foreign stocks, private equity and «absolute return strategies» (i.e., hedge funds), the New York State pension fund has a risky asset allocation profile typical of its counterparts across the country — because chasing risk is its only hope of earning 7 percent a year in a market where the most secure long - term bonds yield barely 2 percent.

Not only are the extremely risky compared to other assets, most young people won't be able to own those in a tax deferred account for a long time because they won't have the capital inside the account.

When risky assets get very correlated with each other, and the only alternative game to play is buying high quality bonds, it is an unstable situation that portends lower risky asset prices.

In 2014 only very risky assets are paying 8 % interest.

DJ: In my opinion, your asset allocation is far too risky because even your youngest is only 8 years from finishing his / her degree.

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.

This is on top of the problem that when high - quality long interest rates are so low, it is typically a bad time to try to make money in financial assets, because returns on risky assets are typically only 0 - 2 % percent higher than the yield on long BBB / Baa debt over the long run.

The rally in risky assets was only the latest in a bull market now comfortably into its ninth year.

The BMO GAM report alludes to some of the ETF liquidity concerns that have been in the news, and cautioned that investors should only allocate a limited percentage of their portfolios to riskier asset classes.

They recently completely wrote off a minor holding (I think it was only worth a few hundread thousand so not a big deal) but it goes to show that their assets / holdings may be risky.

This should encourage us not only to buy houses, but also equities and other risky long - term financial assets.

At some point after 10 - 15 of investing in stocks only, I do plan to transfer a percentage of the portfolio to less risky assets of fixed income to reduce the risk of losing money due to stock market fluctuations when approaching her start date.

Between 2007 and 2009, the Fed more than doubled the size of its balance sheet and changed its composition by purchasing risky assets from troubled financial institutions, in contrast to the historical norm of acquiring only Treasury securities.

However, it's only risky on assets you have no control over or when you over leverage without looking at the cash flow closely after debt service.

Would anyone have invested in a Canadian non-bank sponsored ABCP if shown a list of assets containing 59 per cent leveraged super senior swaps insuring risky loans of a number of European banks, where the return would be only marginally higher than treasuries, even if a rating agency gave it an AAA?

Between 2007 and 2009, the Fed more than doubled the size of its balance sheet and changed its composition by purchasing risky assets from troubled financial institutions, in contrast to the historical norm of acquiring only Treasury securities.