Not exact matches
In addition, I would point out that equities are purchased and traded by private
individuals, who inherently have time value of money and liquidity preferences that are also priced into equities, given their specific limitations and characteristics (e.g., in the event of a
stock market crash, liquidity may disappear
at the exact moment it is most desired, and therefore the
risk of that lack of liquidity is priced into the equity).
NYCHA and HUD must continually monitor who is living inside our public housing
stock to make sure no family is
at risk of a dangerous
individual who could be living next door before a tragedy occurs,» said State Senator Klein.
Traders, on the other hand, are generally less
risk averse because they deal with losses every day; they work with large portfolios of
stocks tend to look
at the long - term, bigger picture, rather than focusing too much on
individual, day - to - day ups and downs.
The downside is that an
individual stock exposes you to financial
risk and is vulnerable to the effects of negative events
at several levels: a
stock is sensitive not only to shifts in the market but also to shifts in the underlying industry and company it represents.
At my age, shouldn't I be taking more
risk by investing in
individual stocks?
Or, do as Chelsea
at 8 says and let 10 % of your money be a
risk area (like a sector fund or even
individual stocks).
At the same time, your money will be invested in broad indexes so you won't have the
risk of
individual stocks or bonds not doing well.
Before modern portfolio theory was developed, the operating principle of investing was to look
at individual stocks and find «winners» — equities that would produce decent returns without too much
risk.
Before modern portfolio theory was developed, the operating principle of investing was to look
at individual stocks and pick «winners» — equities that would produce decent returns without too much
risk.
How about taxing profit on ETFs
at higher rate, based on the proven fact, that index investment involves less
risk than investing in
individual stocks, for example?
The Funds are subject to
stock market
risk, meaning
stocks in a Fund may fluctuate in response to developments
at individual companies or due to general market and economic conditions.
Instead of looking
at individual stocks, now I might be focusing on asset classes, making sure I'm diversifying with 12 or 14 different asset classes — small companies, value companies, domestic, US, international, even on the bond side making sure I'm spreading that
risk out into all different types of bonds.
So
at the end of the day, it really boils down to your own
risk appetite and that should help you decide if you should go for ETFs or
individual stocks.
Some academics suggest you can mitigate
risk by buying
at least 15
individual stocks.
I monitor
risk at both the
individual stock and portfolio level.
Without any obvious signs of a public -
stock mania that puts
individual shareholders
at risk, it's hard to argue that we are in a 1990s - style bubble yet (although some critics fear that the new crowdfunding bill could accelerate the problem).