Before trying to manage political
risk in any given market, business leaders must understand the fundamentals that pertain to all markets.
Finance experts assume that there are two types of
risk in a given market: the systemic risk and the idiosyncratic (individual) risk.
Not exact matches
It was also then that some of the biggest marketers succeeded with a business model that may still hold about an 80 percent share of the DRTV
market: Find products created by a would - be Edison somewhere
in America,
market them on DRTV,
give a small royalty cut to the inventor, and share the
risk of a capricious DRTV audience across your product portfolio.
In addition, it gives the designers a low - risk way of entering the huge petite market (over 47 percent of American women are 5» 4» and shorter), and the retailer the ability to provide customers more variety in a cost - effective way as they're not investing in inventory that may or may not sel
In addition, it
gives the designers a low -
risk way of entering the huge petite
market (over 47 percent of American women are 5» 4» and shorter), and the retailer the ability to provide customers more variety
in a cost - effective way as they're not investing in inventory that may or may not sel
in a cost - effective way as they're not investing
in inventory that may or may not sel
in inventory that may or may not sell.
While there is definitely a
risk involved, Walter Updegrave writes
in CNN Money that you «go with a portfolio that will
give you a shot at realistic gains but you'll also be comfortable sticking with during major
market setbacks.»
Such
risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions
in the industries and
markets in which United Technologies and Rockwell Collins operate
in the U.S. and globally and any changes therein, including financial
market conditions, fluctuations
in commodity prices, interest rates and foreign currency exchange rates, levels of end
market demand
in construction and
in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions and natural disasters and the financial condition of our customers and suppliers; (2) challenges
in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (3) the scope, nature, impact or timing of acquisition and divestiture or restructuring activity, including the pending acquisition of Rockwell Collins, including among other things integration of acquired businesses into United Technologies» existing businesses and realization of synergies and opportunities for growth and innovation; (4) future timing and levels of indebtedness, including indebtedness expected to be incurred by United Technologies
in connection with the pending Rockwell Collins acquisition, and capital spending and research and development spending, including
in connection with the pending Rockwell Collins acquisition; (5) future availability of credit and factors that may affect such availability, including credit
market conditions and our capital structure; (6) the timing and scope of future repurchases of United Technologies» common stock, which may be suspended at any time due to various factors, including
market conditions and the level of other investing activities and uses of cash, including
in connection with the proposed acquisition of Rockwell; (7) delays and disruption
in delivery of materials and services from suppliers; (8) company and customer - directed cost reduction efforts and restructuring costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes
in political conditions
in the U.S. and other countries
in which United Technologies and Rockwell Collins operate, including the effect of changes
in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general
market conditions, global trade policies and currency exchange rates
in the near term and beyond; (16) the effect of changes
in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations
in the U.S. and other countries
in which United Technologies and Rockwell Collins operate; (17) the ability of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the
risk that such approvals may result
in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may
give rise to a right of one or both of United Technologies or Rockwell Collins to terminate the merger agreement, including
in circumstances that might require Rockwell Collins to pay a termination fee of $ 695 million to United Technologies or $ 50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the
market price of United Technologies» and / or Rockwell Collins» common stock and / or on their respective financial performance; (20)
risks related to Rockwell Collins and United Technologies being restricted
in their operation of their businesses while the merger agreement is
in effect; (21)
risks relating to the value of the United Technologies» shares to be issued
in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22)
risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23)
risks associated with merger - related litigation or appraisal proceedings; and (24) the ability of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel.
Staley told CNBC that
given the high level of debt across the world,
in particular among emerging
markets where dollar - denominated debt has grown dramatically, many economies could be at
risk if there were sudden changes
in financial conditions.
'' [But] with the stock at 30 times 2020 earnings, with the upside coming from a glutted
market,» he continued, «we think the
risk - reward
in this,
given where other LNG plays are
in Australia and elsewhere, is just completely out - of - whack.»
LJM founder Anthony Caine had said
in a letter to clients
in February, that working with its clearing broker, LJM «agreed that liquidation across all client accounts, regardless of clearing broker, was the most prudent action
given market volatility and portfolio
risks.»
P&G has
given agencies a year to get to «a transparent, clean and productive media supply chain,» or
risk losing its business, according to Chief
Marketing Officer Marc Pritchard, speaking at the IAB Annual Leadership Meeting, a digital advertising industry conference
in Hollywood, Florida, on Sunday.
Vib, for example,
gives Best Western a foothold
in higher - end
markets, while Glo provides an alternative to its existing core brand — despite the
risk of cannibalization.
For example, the expected timing and likelihood of completion of the proposed merger, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed merger that could reduce anticipated benefits or cause the parties to abandon the transaction, the ability to successfully integrate the businesses, the occurrence of any event, change or other circumstances that could
give rise to the termination of the merger agreement, the possibility that Kraft shareholders may not approve the merger agreement, the
risk that the parties may not be able to satisfy the conditions to the proposed transaction
in a timely manner or at all,
risks related to disruption of management time from ongoing business operations due to the proposed transaction, the
risk that any announcements relating to the proposed transaction could have adverse effects on the
market price of Kraft's common stock, and the
risk that the proposed transaction and its announcement could have an adverse effect on the ability of Kraft and Heinz to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers and on their operating results and businesses generally, problems may arise
in successfully integrating the businesses of the companies, which may result
in the combined company not operating as effectively and efficiently as expected, the combined company may be unable to achieve cost - cutting synergies or it may take longer than expected to achieve those synergies, and other factors.
For example,
in the hardware space, a year ago, $ 1M
in pre-sales on Kickstarter with a great product idea was sometimes enough to raise a Series A. Now, investors are demanding pre-sales
in the millions with a product that's either functional or actually
in production
given the
risk of bringing hardware to
market.
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
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
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).
Many investors have been surprised at the complacency
in the
markets given geopolitical
risks (North Korea, for example), domestic political
risks (tax reform, trade war, etc.) and central banks
in the U.S., Europe and China either removing, or talking about removing, monetary - policy accommodation.
So do the increase
in the mobility of saving and investment; the increase
in the desired exposure to foreign assets (the reduction
in home bias); the financial
market innovation that allows for better diversification and
risk sharing; and the differentials
in the pace of technology adoption or workplace practices that
give rise to varying productivity trends across countries.
But they also
give risk - averse investors the stability they crave to balance out the craziness of the moves
in the stock
market.
Liquidity
risk: is a financial
risk that can occur when a
given financial asset, security, or commodity can not be traded quickly enough
in the
market to prevent or minimize a loss.
I would not exclude another LTCM style episode of systemic
risk given the
risk of unraveling of highly leveraged carry trades and the end of easy liquidity: triggers could be a disorderly move of the US dollar, perhaps following trade war threats to China, leading to a 1987 - style stock
market crash; or MBSs interacting with a housing slump and the hedging activities of GSEs; or greater corporate distress or a Ford / GM entering into Chapter 11 triggering a massive sell - off
in the murky, non-transparent and untested credit derivatives.
Given the flaws
in Netflix's business and the
market's increasing awareness of them, holders of NFLX are taking imprudent
risk with the stock at anywhere close to its current valuation.
Market risks are biased to the downside
given that a good outcome is priced
in,
in both Canadian and Mexican
markets.
Still, the current return /
risk profile features highly «unpleasant skew» -
in any
given week, the single most likely outcome is actually a small advance, yet the average return
in the current classification is quite negative, because those small marginal gains have typically been wiped out by steep, abrupt
market plunges that erase weeks or months of gains
in one fell swoop (see Impermanence and Full - Cycle Thinking for a chart).
However, the overall
market return /
risk climate could become consistent with a more neutral or modestly constructive outlook (with an obligatory safety net
in either case,
given current valuation extremes) if
market internals were to improve decisively.
And I think that
given higher volatility
in the
markets, going into higher yielding bonds or stocks, the
risker ones, is unadvisable.
Given the relatively low - rate environment and narrow credit spreads, we continue to expect few opportunities for mispriced
risk in credit
markets.
LJM founder Anthony Caine said
in a letter to clients
in February that working with its clearing broker, LJM «agreed that liquidation across all client accounts, regardless of clearing broker, was the most prudent action
given market volatility and portfolio
risks.»
But the law, enacted
in 2005, includes exceptions for sale and
marketing practices that violate state or federal laws and instances of so - called negligent entrustment,
in which a gun is carelessly
given or sold to a person posing a high
risk of misusing it.
It offers the potential to earn more money than, say, a bank certificate of deposit or a money
market account, and the index options
give the client some flexibility
in how much downside
risk there will be.
Trade is a great driver of productivity, and so the
risk of growing protectionism concerns me.15 More open trade with the United States and Mexico
in the 1990s
gave Canadian firms access to much bigger
markets and therefore greater incentives to invest —
in both physical and human capital.16 Disrupting supply chains and reducing incentives to compete will not create more jobs and income
in the long run.
Discover why investing
in the Canadian dollar can
give investors exposure to the crude oil
market without the
risks of futures investing.
Given the additional overbought condition of the stock
market, we should be concerned about abrupt downside
risk, but as noted above, we are willing to soften our hedges
in the event that
market action improves sufficiently.
As I've regularly noted
in recent months, our immediate outlook is essentially flat neutral for practical purposes, though we're partial to a layer of tail -
risk hedges, such as out - of - the - money index put options,
given that a
market decline on the order of even 5 % would almost certainly be sufficient to send our measures of
market internals into a negative condition.
Given the absence of a public trading market of our common stock, and in accordance with the American Institute of Certified Public Accountants Accounting and Valuation Guide, Valuation of Privately - Held Company Equity Securities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the option grants involve illiquid securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic out
Given the absence of a public trading
market of our common stock, and
in accordance with the American Institute of Certified Public Accountants Accounting and Valuation Guide, Valuation of Privately - Held Company Equity Securities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside investors
in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material
risks related to our business; the fact that the option grants involve illiquid securities
in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company
given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic out
given the prevailing
market conditions and the nature and history of our business; industry trends and competitive environment; trends
in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic outlook.
«The bond
market represents more of an evolving
risk given the likely onset of Federal Reserve rate hikes near - term, which
in turn will lead to speculation as to when the rest of the world will follow,» said Gayle.
Even
given the considerable
risk involved — especially
given stock
market crashes
in 2001 and 2008 — people want to get involved
in trading and leverage their earnings for a better lifestyle and comfortable retirement
in the golden years.
It is worth pointing out that the move to make bitcoin illegal can also put Colombia's economy at
risk, considering the fact that the digital currency is growing
in both value and popularity, thus creating a strong
market that Colombia will have no access to unless they
give up on their decisions.
Given the lack of follow - through
in the stock
market lately, we are pleased that the chart pattern of this low - correlation ETF is presenting traders with such a low -
risk buy entry point.
As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for
market losses, particularly
given that the current bull
market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other
market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling
risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness
in the ISM Purchasing Managers Index
in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.
Even as the Fed has sought to
give much clearer signals about its intentions to raise base rates, the performance of US
risk assets has continued to improve, suggesting that
markets are comfortable with the prospect of a small rise
in base rates
in December.
In my view, investors who view current valuations as «justified relative to interest rates» are really saying that a decade of zero total returns on stocks is perfectly adequate compensation for the
risk of a 45 - 55 %
market loss over the completion of the current
market cycle - a decline that would historically be merely run - of - the - mill
given current valuations, and that certainly can not be precluded by appealing to low interest rates.
And while equity
markets have been performing well this year, there are numerous potential
risk factors that could cause a sharp correction
in the equity
markets, such as the U.S. election, sluggish global economic growth and the future of Europe
given the «Brexit» situation.
If, for example, a
given individual security
in a
market is offering a more attractive
risk - adjusted future return than all of the other securities, and if investors know this, then they will try to buy that security, selling the others as necessary to raise funds.
In less developed countries where capital
markets are restricted this mistrust is a
given as people are threatened by devaluations, seizure of property and political
risk.
Unconscionable conduct (agrees with NFF that they have not provided protection and support reforms «to provide transparency
in the supply chain» and recognise that «certain classes of suppliers... are predisposed to suffering from a special disadvantage...»; misuse of
market power (legal framework must «level the balance of
market power
in negotiations...», «ensure transparency
in the transmission of
market prices» and «not allow for final
market risks to be borne by the primary producer» and provide «transparency of contract processes» - specifically, Canegrowers supports effects test and a process
giving ACCC greater power to «regulate anti-competitive behaviour and impose penalties», shifting «the decisions framework from the judicial system to a regulatory system» which would make it more accessible to small producers); collective bargaining (notes limits of Sugar Industry Act (Qld); authorisation and notification approval costly and limited and not a viable alternative - peak bodies should be able to «commence and progress collective bargaining with mills on behalf of their members» and current threshold too restrictive)» competitive neutrality (mixed outcomes - perverse outcomes
in the case of natural monopolies - suggest remove «application of competitive neutrality provisions to natural monopoly essential services»)
Yes, it's a
risk to
give a player who is susceptible to injuries a long - term deal but to replace him with a player of similar quality it's going to cost the Gunners close to # 40million
in the current
market.
Given the special vulnerability of infants and the
risks involved
in inappropriate feeding practices, usual
marketing practices are therefore unsuitable for these products.
It refuses to warn on labels that powdered formula is not sterile and may contain harmful bacteria and does not
give correct instructions on how to reduce the
risks — unless forced to by law (as
in the UK, where it
markets the SMA brand).
«The United Kingdom,
in exchange for
giving its agreement, asked for a specific protocol on financial services which, as presented, was a
risk to the integrity of the internal
market,» he told the parliament.
Alistair Darling's Budget may have
given «insufficient weight» to the
risks of continued financial
market turbulence
in making forecasts for economic growth, a report by the House of Commons Treasury committee has claimed.
In the context of systemic
risk due to banking panics, the Federal Deposit Insurance Corporation has the political effect of
giving bankers an overpowering incentive to influence the Federal Reserve System's Federal Open
Market Committee and the Federal Reserve Board of Governors to implement system wide policies for extension of credit which socialize and cartelize the banking sector to work towards its own common purpose.