Higher real yields change the relative value proposition of stocks and bonds, raising the bar for equities and
other risk assets as investors re-assess risk / reward.
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.
He argues that firms like the one he co-founded — PIMCO —
as well
as other large
asset managers like BlackRock, now present the systemic
risk that Dodd - Frank sought to transfer away from banks.
«In soliciting investments in the Fake Funds, CASPERSEN made the following false representations to investors, among
others: in recognition for his prior work with Park Hill Group, CASPERSEN had been offered a «friends and family» investment allocation in a security that was allegedly offered by a private equity firm; CASPERSEN was personally investing in the security, and offering it to his family and a limited number of friends; the investment was a credit facility secured by a portfolio of
assets owned by one of the Legitimate Funds; the investor would receive quarterly interest payments, ranging from 15 to 20 percent; the investment was practically
risk - free,
as the loaned funds would remain in a bank account; the investor could withdraw the principal at any time with 90 days» notice; and investor funds should be wired to one of the Fake Fund Accounts.
Actual results, including with respect to our targets and prospects, could differ materially due to a number of factors, including the
risk that we may not obtain sufficient orders to achieve our targeted revenues; price competition in key markets; the
risk that we or our channel partners are not able to develop and expand customer bases and accurately anticipate demand from end customers, which can result in increased inventory and reduced orders
as we experience wide fluctuations in supply and demand; the
risk that our commercial Lighting Products results will continue to suffer if new issues arise regarding issues related to product quality for this business; the
risk that we may experience production difficulties that preclude us from shipping sufficient quantities to meet customer orders or that result in higher production costs and lower margins; our ability to lower costs; the
risk that our results will suffer if we are unable to balance fluctuations in customer demand and capacity, including bringing on additional capacity on a timely basis to meet customer demand; the
risk that longer manufacturing lead times may cause customers to fulfill their orders with a competitor's products instead; the
risk that the economic and political uncertainty caused by the proposed tariffs by the United States on Chinese goods, and any corresponding Chinese tariffs in response, may negatively impact demand for our products; product mix;
risks associated with the ramp - up of production of our new products, and our entry into new business channels different from those in which we have historically operated; the
risk that customers do not maintain their favorable perception of our brand and products, resulting in lower demand for our products; the
risk that our products fail to perform or fail to meet customer requirements or expectations, resulting in significant additional costs, including costs associated with warranty returns or the potential recall of our products; ongoing uncertainty in global economic conditions, infrastructure development or customer demand that could negatively affect product demand, collectability of receivables and
other related matters
as consumers and businesses may defer purchases or payments, or default on payments;
risks resulting from the concentration of our business among few customers, including the
risk that customers may reduce or cancel orders or fail to honor purchase commitments; the
risk that we are not able to enter into acceptable contractual arrangements with the significant customers of the acquired Infineon RF Power business or otherwise not fully realize anticipated benefits of the transaction; the
risk that retail customers may alter promotional pricing, increase promotion of a competitor's products over our products or reduce their inventory levels, all of which could negatively affect product demand; the
risk that our investments may experience periods of significant stock price volatility causing us to recognize fair value losses on our investment; the
risk posed by managing an increasingly complex supply chain that has the ability to supply a sufficient quantity of raw materials, subsystems and finished products with the required specifications and quality; the
risk we may be required to record a significant charge to earnings if our goodwill or amortizable
assets become impaired;
risks relating to confidential information theft or misuse, including through cyber-attacks or cyber intrusion; our ability to complete development and commercialization of products under development, such
as our pipeline of Wolfspeed products, improved LED chips, LED components, and LED lighting products
risks related to our multi-year warranty periods for LED lighting products;
risks associated with acquisitions, divestitures, joint ventures or investments generally; the rapid development of new technology and competing products that may impair demand or render our products obsolete; the potential lack of customer acceptance for our products;
risks associated with ongoing litigation; and
other factors discussed in our filings with the Securities and Exchange Commission (SEC), including our report on Form 10 - K for the fiscal year ended June 25, 2017, and subsequent reports filed with the SEC.
My point was and is that the equity
risk premium is bundled up closely with the nature of the security itself (i.e., being a publicly traded, relatively liquid investment
asset called an equity, that has a very specific bundle of rights and
risks attached to it), which has very different characteristics than the many
other financial
assets available in the economy (many of which have bundles of
risk that are perceived
as «riskier», and many of which are perceived
as «less risky»).
While there is no such thing
as «the right amount» when it comes to cash or any
other asset class, investors need to consider both their return objectives and
risk tolerance when making allocation decisions that are right for them.
As we look back on 2017, it will likely be remembered as an exceptional year for many investors, specifically those who owned equities and other risk asset
As we look back on 2017, it will likely be remembered
as an exceptional year for many investors, specifically those who owned equities and other risk asset
as an exceptional year for many investors, specifically those who owned equities and
other risk assets.
The Fund is subject to substantially the same
risks as those associated with the direct ownership of the securities or
other assets represented by the exchange - traded products («ETPs») in which the Fund invests.
Correlations between crude oil and
other higher
risk assets, such
as stocks, emerging market
assets and high yield...
Many factors could cause BlackBerry's actual results, performance or achievements to differ materially from those expressed or implied by the forward - looking statements, including, without limitation: BlackBerry's ability to enhance its current products and services, or develop new products and services in a timely manner or at competitive prices, including
risks related to new product introductions;
risks related to BlackBerry's ability to mitigate the impact of the anticipated decline in BlackBerry's infrastructure access fees on its consolidated revenue by developing an integrated services and software offering; intense competition, rapid change and significant strategic alliances within BlackBerry's industry; BlackBerry's reliance on carrier partners and distributors;
risks associated with BlackBerry's foreign operations, including
risks related to recent political and economic developments in Venezuela and the impact of foreign currency restrictions;
risks relating to network disruptions and
other business interruptions, including costs, potential liabilities, lost revenues and reputational damage associated with service interruptions;
risks related to BlackBerry's ability to implement and to realize the anticipated benefits of its CORE program; BlackBerry's ability to maintain or increase its cash balance; security
risks; BlackBerry's ability to attract and retain key personnel;
risks related to intellectual property rights; BlackBerry's ability to expand and manage BlackBerry ® World ™;
risks related to the collection, storage, transmission, use and disclosure of confidential and personal information; BlackBerry's ability to manage inventory and
asset risk; BlackBerry's reliance on suppliers of functional components for its products and
risks relating to its supply chain; BlackBerry's ability to obtain rights to use software or components supplied by third parties; BlackBerry's ability to successfully maintain and enhance its brand;
risks related to government regulations, including regulations relating to encryption technology; BlackBerry's ability to continue to adapt to recent board and management changes and headcount reductions; reliance on strategic alliances with third - party network infrastructure developers, software platform vendors and service platform vendors; BlackBerry's reliance on third - party manufacturers; potential defects and vulnerabilities in BlackBerry's products;
risks related to litigation, including litigation claims arising from BlackBerry's practice of providing forward - looking guidance; potential charges relating to the impairment of intangible
assets recorded on BlackBerry's balance sheet;
risks as a result of actions of activist shareholders; government regulation of wireless spectrum and radio frequencies;
risks related to economic and geopolitical conditions;
risks associated with acquisitions; foreign exchange
risks; and difficulties in forecasting BlackBerry's financial results given the rapid technological changes, evolving industry standards, intense competition and short product life cycles that characterize the wireless communications industry.
The ability to diversify your investments and (somewhat) mitigate non-systemic
risk in your portfolio is irresistible to many investors — especially when you can apply the advantages of mutual funds to
other asset classes, such
as currencies.
This is evident in a number of developments, including: increased demand for higher -
risk assets; the increase in «carry trades» — a form of gearing where funds are borrowed short - term at low interest rates and invested in higher - yielding
assets, often in
other countries; growth in alternative investment vehicles such
as hedge funds; and growth in alternative investment strategies such
as selling embedded options (see Box A).
Business owners who,
as a normal course of business, create a potential
risk of injury to themselves or
others should purchase business or personal liability insurance in addition to sheltering their
assets with the LLC.
This arrangement limits partners» personal liability, so that, for example, if one partner is sued for malpractice,
other partners» individual
assets are not at
risk as a result.
But
as risk aversion subsides, and investors return to corporate bonds and
other assets, investors are now calculating the
risks of renewed dollar inflation.
Admittedly, there has been a visible flight from erstwhile «
risk - free»
assets in
other areas (such
as the Eurozone) to AAA - rated Commonwealth bonds (see charts below).
Over time, MFS has been a leading innovator in the
asset management industry, including creating one of the first in - house research departments in the mutual fund industry in 1932, launching the first high - yield municipal bond fund and the first global balanced fund, and more recently creating «outcome - oriented» products, such
as its line of target -
risk, target - date, and
other asset allocation strategies.
Cash Allocations: I talked about this chart in the video on the Global
Risk Radar, specifically I talked about this alongside the chart which showed valuations
as expensive for the major
assets (property, stocks, and bonds), and how it reflects the trend where central banks have bullied investors out of cash and into
other assets.
Calomiris proposes (1) internal governance reforms that would decentralize power within the Fed and promote diversity of thinking; (2) policy process reforms that would narrow the Fed's primary mandate to price stability and require the Fed to adopt and disclose a systematic approach to monetary policy; and (3)
other reforms that would constrain the Fed's
asset holdings and activities so
as to avoid actions that conflict with its monetary policy mission and that
risk undermining its independence.
It was observed that prices of
other risk assets, such
as emerging market stocks, high - yield corporate bonds, and commercial real estate, had also risen significantly in recent months.»
Correlations between crude oil and
other higher
risk assets, such
as stocks, emerging market
assets and high yield bonds, remain elevated.
Examples of these
risks, uncertainties and
other factors include, but are not limited to the impact of: adverse general economic and related factors, such
as fluctuating or increasing levels of unemployment, underemployment and the volatility of fuel prices, declines in the securities and real estate markets, and perceptions of these conditions that decrease the level of disposable income of consumers or consumer confidence; adverse events impacting the security of travel, such
as terrorist acts, armed conflict and threats thereof, acts of piracy, and
other international events; the
risks and increased costs associated with operating internationally; our expansion into and investments in new markets; breaches in data security or
other disturbances to our information technology and
other networks; the spread of epidemics and viral outbreaks; adverse incidents involving cruise ships; changes in fuel prices and / or
other cruise operating costs; any impairment of our tradenames or goodwill; our hedging strategies; our inability to obtain adequate insurance coverage; our substantial indebtedness, including the ability to raise additional capital to fund our operations, and to generate the necessary amount of cash to service our existing debt; restrictions in the agreements governing our indebtedness that limit our flexibility in operating our business; the significant portion of our
assets pledged
as collateral under our existing debt agreements and the ability of our creditors to accelerate the repayment of our indebtedness; volatility and disruptions in the global credit and financial markets, which may adversely affect our ability to borrow and could increase our counterparty credit
risks, including those under our credit facilities, derivatives, contingent obligations, insurance contracts and new ship progress payment guarantees; fluctuations in foreign currency exchange rates; overcapacity in key markets or globally; our inability to recruit or retain qualified personnel or the loss of key personnel; future changes relating to how external distribution channels sell and market our cruises; our reliance on third parties to provide hotel management services to certain ships and certain
other services; delays in our shipbuilding program and ship repairs, maintenance and refurbishments; future increases in the price of, or major changes or reduction in, commercial airline services; seasonal variations in passenger fare rates and occupancy levels at different times of the year; our ability to keep pace with developments in technology; amendments to our collective bargaining agreements for crew members and
other employee relation issues; the continued availability of attractive port destinations; pending or threatened litigation, investigations and enforcement actions; changes involving the tax and environmental regulatory regimes in which we operate; and
other factors set forth under «
Risk Factors» in our most recently filed Annual Report on Form 10 - K and subsequent filings by the Company with the Securities and Exchange Commission.
Brought together
as part of the Farm Animal Investment
Risk & Return (FAIRR) initiative, they include the fund arms of insurer Aviva and Norwegian lender Nordea,
asset management groups Boston Common and Impax, several Swedish state pension funds and several
other charities and ethical investors.
deCODE's actual results could differ materially from those anticipated in the forward - looking statements
as a result of
risks and uncertainties, including, without limitation, (1) the impact of the announcement of its bankruptcy filing on deCODE's operations; (2) the ability of deCODE to maintain sufficient debtor - in - possession financing to fund its operations and the expenses of the Chapter 11 proceeding; (3) the ability of deCODE to obtain court approval of its motions in the Chapter 11 proceeding; (4) the outcome and timing of the proposed sale of deCODE's
assets, including deCODE's ability to close a transaction with SagaInvestments, LLC or any
other purchaser; (5) the uncertainty associated with motions by third parties in the bankruptcy proceeding; (6) deCODE's ability to obtain and maintain normal terms with vendors and service providers and contracts that are critical to its operation; and (7)
other risks identified in deCODE's filings with the Securities and Exchange Commission, including, without limitation, the
risk factors identified in our most recent Annual Report on Form 10 - K and any updates to those
risk factors filed from time to time in our Quarterly Reports on Form 10 - Q or Current Reports on Form 8 - K.
Although recently rising prices for stocks, high - yield bonds, commodities and
other riskier
assets would suggest otherwise, investors remain skittish over the still unresolved and quite concerning
risks facing financial markets, such
as the U.S. presidential election, the potentially prolonged post-Brexit renegotiations, Italian bank solvency and a slowing China.
Correlations between crude oil and
other higher
risk assets, such
as stocks, emerging market
assets and high yield bonds, remain elevated.
As for the
other portion of your
assets — your discretionary money — you can place this in any investment you feel comfortable about, whether it be in stocks, ETFs, mutual funds (or in bonds, REITs and
other asset classes) but I'd be careful to do sufficient research before taking on any
risk.
But just keep in mind that the stock market has a lot of ups and downs, and the
risk of loss is much higher with stocks than with
other asset classes such
as bonds or cash.
Divisions of
other elements in the retirement portfolio, such
as investments, can often trip up older divorced couples
as well, due to an uneven distribution of
risk or
asset diversity.
The importance of correlation in the investing world comes from the simple (and Nobel Prize winning) insight that since investors naturally seek to minimize
risk, what they should do is construct portfolios with
assets that have
as low a correlation with each
other as possible.
d)
Other methods, but they generally pose high
risks to one's own
assets (such
as borrowing from a 401 (k) or life insurance policy, or against a home).
As with any
other asset, stocks come with some
risks because companies don't always register positive results.
While there is no such thing
as «the right amount» when it comes to cash or any
other asset class, investors need to consider both their return objectives and
risk tolerance when making allocation decisions that are right for them.
Hi Abdul:
As I mentioned above, I intentionally choose to keep things simple, though I fully recognize that
other asset classes could be added to the portfolio that would potentially increase return and / or reduce the portfolio's total
risk.
Derivatives
Risk: Derivatives are instruments, such
as futures and foreign exchange forward contracts, whose value is derived from that of
other assets, rates or indices.
The market value of the portfolio may decline
as a result of a number of
other factors, including interest rate
risk, credit
risk, inflation / deflation
risk, mortgage and
asset - backed securities
risk, US Government securities
risk, foreign investment
risk, currency
risk, derivatives
risk, leverage
risk and liquidity
risk.
To lower your
risk, invest in a wider range of companies and have a portion of your money in
other asset classes besides stocks, such
as bonds or real estate.
It is critical to understand that «return
risk» written about in the Vanguard paper is not the only objective in an
asset allocation process since
other forms of
risk must be managed
as part of any investment plan.
That is why your textbook feels the need to add the qualifier «for practical purposes,» meaning that the
risk of a money market account is so much lower than virtually any
other asset class that it can reasonably be approximated
as risk free.
Ryan Labs
Asset Management Inc. (Ryan Labs), a Sun Life Investment Management company, has announced the launch of their Defensive
Risk Premia (DRP) strategy for corporate and public pension plans,
as well
as other institutional investors.
Other noncore
asset classes, such
as high yield bonds, TIPS, and REITs, can also help investors hedge their inflation
risk.
In certain cases, you could lose not only your investment property but your
other assets may be at
risk as well.
Correlations between crude oil and
other higher
risk assets, such
as stocks, emerging market
assets and high yield...
By contrast, there are
other firms, such
as Personal Capital and my firm, Rebalance IRA, where we have similar investment philosophies and similar use of technology, but we have real, live investment advisors who deal extensively with clients and match them with the right
asset allocation, low - cost underlying portfolios, very low cost, and disciplined rebalancing, which is really an essential
risk management and return tool.
During the year, municipal bonds enjoyed being one of the «
risk off»
asset classes and
as low and negative yields permeated the global bond markets municipal bonds became a source for incremental yield over
other options.
Other factors affecting risk tolerance are the time horizon you have to invest, your future earning capacity, and the presence of other assets such as a home, pension, Social Security or an inherit
Other factors affecting
risk tolerance are the time horizon you have to invest, your future earning capacity, and the presence of
other assets such as a home, pension, Social Security or an inherit
other assets such
as a home, pension, Social Security or an inheritance.
Schapiro and
other advocates of floating net
asset values argue that fixed share prices create the illusion that money market funds are
risk - free,
as good
as cash, when this is not the case.
The increase in capital required to fund the sale of the additional bonds inevitably comes from
other asset classes, resulting in an increase in the rate of return for all
assets across the
risk curve
as investors sell
other assets to re-weight their mix of holdings toward bonds.
Assuming you invest about $ 1000 per month out of your dividends (
as you already reached $ 1000 per month in dividends) the
other $ 1500 must be from your paychecks and borrowings, do you make sure to keep your debt to
assets ratio stable at such times (
as the interest rate is set to continue rising) or increasing your
risks as this is a time of opportunities?