If you are achieving a rental yield of 7 % and can borrow at just 3.5 % after a downturn, your month should be salivating for such a 3.5 % immediate spread with
principal appreciation potential.
Not exact matches
The adviser uses the following
principal strategies: investing primarily in common stocks, selected for their
appreciation potential; investing in certain event driven situations; engaging, within prescribed limits, in short sales of equity securities; varying its common stock exposure by hedging, primarily with the purchase or short sale of Standard & Poor's 500 Index futures contracts; and investing all or any portion of its assets in U.S. Treasury securities.
You will be reducing reinvestment risk of
principal and positioning for
potential appreciation as interest rates trend down.
Both equities and ETFs can offer
potential growth from market price
appreciation; however, they are subject to market volatility and thus, open to market price risk and
potential loss of
principal.
Sigh, Germany's really in the eye of the storm... On the one hand, it offers a safe - haven to investors, particularly those seeking safety of
principal (bonds), or the
potential for (lower risk) price
appreciation (property).