Sentences with phrase «returns over the short term»

As we discussed earlier too, we believe such approach of selecting funds is not ideal as investors generally tend to get carried away with high returns over a short term.

A higher growth option will have higher risk and experience more volatile returns over the short term, but will usually achieve higher returns over the long term.

Not exact matches

Also but separately the current sharemarket acts as a casino and has lost its original form due to major hedge and other funds looking for short term returns in a long term business and also over influencing CEOs and Boards..

The hikes ultimately will return the central bank's key short - term rate, called the federal funds rate, to about 4 percent over the next two years, which economists generally consider more a sustainable level.

Interest rate expectations are constantly changing over the short - term but over longer periods bond returns are more or less based on math.

The point was to show how much variation in performance there's been historically over shorter time frames compared with a much narrower range in long - term returns.

We intend to continue to make investments that will serve sellers and buyers over the long term even if a return on these investments is not realized in the short term.

EMH proponents argue that events like those dealt with in behavioral finance are just short - term anomalies, or chance results, and that over the long term these anomalies disappear with a return to market efficiency.

Since the fund rebalances its leverage on a daily basis, actual returns can significantly deviate from expected returns over the long term due to compounding effects, so XPP is meant as a short - term trading vehicle.

For instance, a portfolio with an allocation of 49 % domestic stocks, 21 % international stocks, 25 % bonds, and 5 % short - term investments would have generated average annual returns of almost 9 % over the same period, albeit with a narrower range of extremes on the high and low end.

Although supply has returned to the market over the short term — due to a combination of increased production from US shale producers and the easy availability of capital via debt and equity markets — I'm expecting supply growth to moderate over the long term as capital becomes more expensive and less available to marginal energy producers.

From record - breaking stock market returns to falling unemployment, the U.S. has no shortage of positive economic indicators, and the majority of investors say they feel confident about achieving both their short - and long - term goals, according to the latest «Morgan Stanley Investor Pulse Poll,» which surveyed more than 1,200 investors age 25 to 75 with over $ 100,000 in assets.

While valuations drive long - term returns, the primary driver of market returns over shorter portions of the market cycle is the attitude of investors toward risk, as indicated by the uniformity or divergence of market internals.

The essential thing to understand about valuations is that while they are highly reliable measures of prospective long - term market returns (particularly over 10 - 12 year horizons), and of potential downside risk over the completion of any market cycle, valuations are also nearly useless over shorter segments of the market cycle.

Valuations are the primary driver of long - term returns, and the risk - preferences of investors — as conveyed by the uniformity or divergence of market action across a broad range of individual stocks, industries, sectors and security types (including credit)-- drive returns over shorter portions of the market cycle.

While long - term market returns are driven almost exclusively by valuations, investment returns over shorter segments of the market cycle are highly dependent on investor psychology, particularly the inclination of investors toward speculation or risk - aversion.

In short, investors have gained about a 5 % annualized excess return over the long term by investing in stocks rather than bills or bonds.

Since the inception of the Fund (as well, of course, in long - term historical tests), our present approach to risk management has both added to returns and reduced volatility - not necessarily in any short period, but over the complete market cycle.

Bonds and cash were always a lousy long - term investment versus equities over many decades, but over shorter timescales the apparent return differences didn't seem so vast as they do today.

As the value of the digital currency swings over a period of time, the potential for returns in the short - as well as the long - term is immense.

In any event, the upshot is that by adhering to a stock selection and hedging approach that has achieved strong returns with reasonable risk over the long - term, my efforts have achieved abysmally low returns in a rallying market over the short - term.

The Strategic Total Return Fund moved the bulk of its assets from short - term Treasury securities to Treasury inflation protected securities as real yields on these securities surged well over 3 %.

The implications for long - term returns remain daunting, but over the short - term, perception is reality.»

At present, investors have no reasonable incentive at all to «lock in» the prospective returns implied by current prices of stocks or long - term bonds (though we suspect that 10 - year Treasuries may benefit over a short horizon due to continued economic risks and still - unresolved debt concerns in Europe, which has already entered an economic downturn).

Put simply, valuation drives long - term returns, and investor risk - preferences drive returns over shorter portions of the market cycle.

I made a recent short - term case for bonds in a recent post given my view that low rates may be disinflationary, despite my view that they have a «horrific risk / return profile» over the longer - term.

If a portfolio loads market risk when the likely return / risk profile is favorable, and hedges market risk when the likely return / risk profile is unfavorable, it's possible to achieve a very satisfactory return / risk profile over the full market cycle without ever making a specific short - term forecast.

«Identifying VXX / XIV Tendencies» finds that the Volatility Risk Premium (VRP), estimated as the difference between the current level of the S&P 500 implied volatility index (VIX) and the annualized standard deviation of S&P 500 Index daily returns over the previous 21 trading days (multiplying by the square root of 250 to annualize), may be a useful predictor of iPath S&P 500 VIX Short - term Futures ETN (VXX) and VelocityShares Daily Inverse VIX Short - term ETN (XIV) returns.

Because investors are only human, they will often want to hold less volatile investments with their shares to smooth their returns over shorter periods, even though it costs them money long - term.

I've noted before that day - to - day returns can't be controlled, so a «good day» for me is one where I take actions that I believe will produce good results over time (such as buying high ranked candidates on short - term weakness, selling lower ranked holding on short - term strength, and aligning our exposure to market fluctuations with the prevailing Market Climate).

The central message of our discipline is that valuations are enormously informative about prospects for long - term and full - cycle returns, but that outcomes over shorter segments of the market cycle are driven by changes in the psychological preferences of investors toward speculation or risk - aversion.

Even more astonishing, between Dec. 31, 1998, and the end of last year, a portfolio of laddered GICs — a strategy in which an investment is staggered over short - and long - term GICs and then rolled over as they mature — generated an average annual return of 3.9 per cent.

«However, let us be equally candid, if «category» (that is liquid milk) returns are not sorted out for better for the medium - to - long term, it will be merely a short - term transfer of cash from a player over-invested in dairy processing to those over invested in dairy production.»

However, make no mistake, Roma wouldn't be getting the Cerci of old, but the local boy is still a pacey winger adept at cutting in from the right flank, one who could be a cheap, if not ideal, short term replacement for Salah, pasting over the cracks and providing the club with some depth once Mo returns.

Since we do not expect RBI to cut interest rates, in this scenario, returns from liquid funds might improve over the last year and it could become a better surrogate to fixed deposits for short term savers.

Too much issue is made of short - term returns, and it's easy to feel depressed about the returns we're seeing over the last few years.

«The institutional interest we see in commodities is driven much more by the desire for diversification than it is by the view that tactically commodity prices will go up in the short term,» said Bob Greer, real return product manager at America's giant bond investor PIMCO, which manages over $ 14 billion in commodity - linked strategies.

We can see from Buffett's experience and hindsight, that it is impossible to earn outsized returns over the long run without experiencing some short - term declines.

For the chance to get higher returns over the long term, investors have historically had to put up with bigger fluctuations in value over the short term.

The basic idea is to invest enough in stocks to generate the returns you'll need over the long term to build an adequate nest egg but also enough in bonds to provide short - term downside protection during market routs.

For example, if short - term rates were to rise 1 %, you would lose about 2 % on a short - term bond fund (assuming a 2 year duration), and your total return over 1 year would be about 0 % (2 % interest minus 2 % decrease in value).

Over the same period, 10 - year Treasury Bonds averaged 5.18 % and short - term 3 - month Treasury Bills averaged a return of 3.46 % before inflation.

Unlike long - term investments, which can yield a greater return over time, short - term investments are typically lower - risk investments with a predictable, smaller return and highly liquid assets, such as a high - yield savings account.

And shorter - term returns have been close to 10 % a year over the last three years.

Mutual funds are in general short term investors, but the few that try to educate their investors that they are long term value investors do get more patient holders, which gets reinforced if the returns are good over a long period.

The SPIVA research returns fairly similar results every year; the vast majority of active funds underperform their benchmark over both the short term (one year) and the longer term (five years).

In the notes following the performance charts contained herein for each of our Funds, we have always gone to great pains to point out the inherent inconsistency of equity returns, particularly in comparison to benchmark indices over shorter term measurement periods.

Although stocks can return well over the long run, in short or immediate term, they may well be outperformed by bonds, especially at certain times in the economic cycle.

And while rising rates are bad for bonds and bond funds in the short - term, climbing yields can actually boost returns on a diversified portfolio of bonds over the long haul, as interest income and proceeds from maturing bonds are re-invested at higher rates.

However, while a 100 % match may sound like a wonderful short - term return on investment, this return must be amortized over the number of years until retirement.