Not exact matches
With market volatility hitting multi-decade lows, junk bond yields also at record lows, the median price / revenue ratio
of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the
potential for an abrupt «air pocket» in the prices
of risky assets that could attend even a modest upward shift in risk premiums.
You then allocate the remainder
of your savings to more and more
risky assets commesurate with your willingless to not see the
potential benefits in retirement.
This means that future deployments in this category
of banks will be less
risky, both from an
asset perspective (i.e.
potential impact on
asset quality) and an earnings perspective (i.e. less dilutive).
You might keep some
assets in these funds to balance
riskier investments, but low yields can expose your
assets to inflation risk — the
potential loss
of purchasing power — along with the lost opportunity to pursue growth through other investments.
It is also important to slowly move your portfolio into less
risky assets as you grow older to protect the growth
of the portfolio from
potential short - term market declines.