«Because
they risk losing their assets.»
The borrower
risks losing the asset if the loan is not repaid according to the terms of the loan contract.
However, some people do not have any valuable assets or simply do not want to
risk losing their assets if something terrible was to happen.
You may end up owing more money than you have, or
risk losing assets such as your home.
If you are unable to pay,
you risk losing your assets, such as your home, in lawsuits.
Not exact matches
But let me qualify that this section only applies to capital that you are willing to
lose; high -
risk capital should be a small percentage of your overall
asset allocation.
Tax - loss harvesting is a good reason to sell a
losing asset, provided you replace it with something that offers similar
risk.
The result: «I see a real
lose -
lose setup for
risk assets,» Gundlach said.
«This is a high -
risk asset class; nobody should invest in this with money that they can't afford to
lose.»
However, the overwhelming growth in exotic ETFs means investors
risk losing themselves in arcane ETF details at the expense of ignoring the big
asset allocation decision.
These include difficulties in complying with KYC and AML rules when dealing with digital
assets;
losing business to less
risk - averse companies that are willing to «engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies;» and (like J.P. Morgan) the potential need to spend large sums while attempting to keep up with shifting technological norms.
Instead of the usual investment
risk of your principal decreasing in value, with cryptocurrencies, you may
lose your crypto
assets entirely.
The argument here is that retirement plans should be diversified, to reduce the participants»
risk of
losing all their
assets.
The results add weight to warnings from analysts that fossil fuel
assets are at
risk of
losing their value and becoming «stranded» as the world transitions to cleaner energy sources.
This post is a reminder to myself and to all of you that we can and will
lose money if we invest in
risk assets for a long enough period of time.
The central bank also warned the Iranian citizens about the high
risks of making investment in the volatile market of the digital currencies saying they «may
lose their financial
assets.»
Many factors could cause BlackBerry's actual results, performance or achievements to differ materially from those expressed or implied by the forward - looking statements, including, without limitation: BlackBerry's ability to enhance its current products and services, or develop new products and services in a timely manner or at competitive prices, including
risks related to new product introductions;
risks related to BlackBerry's ability to mitigate the impact of the anticipated decline in BlackBerry's infrastructure access fees on its consolidated revenue by developing an integrated services and software offering; intense competition, rapid change and significant strategic alliances within BlackBerry's industry; BlackBerry's reliance on carrier partners and distributors;
risks associated with BlackBerry's foreign operations, including
risks related to recent political and economic developments in Venezuela and the impact of foreign currency restrictions;
risks relating to network disruptions and other business interruptions, including costs, potential liabilities,
lost revenues and reputational damage associated with service interruptions;
risks related to BlackBerry's ability to implement and to realize the anticipated benefits of its CORE program; BlackBerry's ability to maintain or increase its cash balance; security
risks; BlackBerry's ability to attract and retain key personnel;
risks related to intellectual property rights; BlackBerry's ability to expand and manage BlackBerry ® World ™;
risks related to the collection, storage, transmission, use and disclosure of confidential and personal information; BlackBerry's ability to manage inventory and
asset risk; BlackBerry's reliance on suppliers of functional components for its products and
risks relating to its supply chain; BlackBerry's ability to obtain rights to use software or components supplied by third parties; BlackBerry's ability to successfully maintain and enhance its brand;
risks related to government regulations, including regulations relating to encryption technology; BlackBerry's ability to continue to adapt to recent board and management changes and headcount reductions; reliance on strategic alliances with third - party network infrastructure developers, software platform vendors and service platform vendors; BlackBerry's reliance on third - party manufacturers; potential defects and vulnerabilities in BlackBerry's products;
risks related to litigation, including litigation claims arising from BlackBerry's practice of providing forward - looking guidance; potential charges relating to the impairment of intangible
assets recorded on BlackBerry's balance sheet;
risks as a result of actions of activist shareholders; government regulation of wireless spectrum and radio frequencies;
risks related to economic and geopolitical conditions;
risks associated with acquisitions; foreign exchange
risks; and difficulties in forecasting BlackBerry's financial results given the rapid technological changes, evolving industry standards, intense competition and short product life cycles that characterize the wireless communications industry.
So the choice is,
risk losing a great deal with real
assets, or
risk losing a certain quantity with cash.
Going forward, advisers and wealth management firms who choose to ignore fiduciary standards face serious
risk of reputational damage and, ultimately,
lost assets under management.
The
risk level control feature also allows a trader to control the daily amount invested,
assets to be traded, amount
lost, etc..
Model 1 - Preservation of Capital
Asset allocation models designed for the preservation of capital are largely for those who expect to use their cash within the next twelve months and do not wish to
risk losing even a small percentage of principal value for the possibility of capital gains.
Putting up the business or personal
assets as collateral can put you at
risk of
losing them in case you default.
Maybe the right question isn't why they
lost money on the hedging transaction, but why they apparently have a boatload of questionable
assets so massive that they need to use whale - sized leverage to hedge the default
risk in the first place.
Centralized exchanges carry a heavy
risk however — your
assets can get frozen,
lost, and controlled by the government, just like what happened with the Mt. Gox scandal.
Unless you want to take the
risk of
losing all your
assets to a lawsuit, you * must * have some form of protection from liability.
«I think that failure of vision puts them at a real
risk of having stranded
assets, of
losing market share [to alternative energy sources] and even of becoming irrelevant.»
Even if you do not consider yourself to be wealthy, when you own
assets such as a home and a car, you
risk losing these possessions if you are liable for costs that exceed your insurance coverage limits.
However, they also
risk losing the pledged
asset in the event of default, so proceed carefully.
While this can be less risky for borrowers as they don't have to fear of
losing their
assets due to defaulting, though the
risks can be heavy on the lenders.
So as he synthesizes the themes of the last six or seven years, he comes down to really basic ideas for each chapter:
Risk, Return, Stocks, Bonds, Portfolio Management, Does Active Investing Work, ETFs, Global Investing, Alternative
Assets, Behavioral Finance, Using Media, and the
Lost Decade.
If you own
assets such as a home, car or stock portfolio, you
risk losing them if you find yourself held responsible for costs that far exceed your insurance policies» liability coverage limits.
By investing in multiple companies and in multiple
asset classes, you greatly reduce the
risk of
losing all of your money should the market experience a downturn.
The
risk level control feature also allows a trader to control the daily amount invested,
assets to be traded, amount
lost, etc..
There is little
risk of Crown Castle
losing control of its real estate
assets.
You'll want to have a mix of different
asset classes in your portfolio to balance the potential for growth and the
risk that you'll
lose money.
The idea of finding
assets that offer a large upside while minimizing the downside
risk is embedded in said mantra: «Heads, I win; tails, I don't
lose much.»
In part II, you were informed that value investing is a
risk - averse strategy that seeks to identify undervalued
assets — bargains — that offer margins of safety based on the Dhandho - mantra: «Heads, I win; tails, I don't
lose much.»
When you finance your company via personal credit you are
risking quite a lot because you are assuming total liability and if your company is ever sued or goes under, you are stuck with the financial burden and may
lose personal
assets while also severely damaging your personal credit.
Asset allocation and diversification according to your time horizon and
risk tolerance will ensure that even if a market turns, not all your investments are
lost.
Winning means keeping your clients happy by realizing low
risk and great returns, slowly growing
assets under management, while at the same time, not wasting /
losing time and money trying to manage money.
When you pursue these high
risk options, you
risk losing your home, and, in some cases, all of your
assets, which is scary.
As traditional hedge fund managers cede ground — and
lose assets — to traditional
asset managers and even ETFs, institutional investors can still tap some of the
risk premia that hedge funds were targeting.
An investment in the fund could
lose money over short, intermediate, or even long periods of time because the fund allocates its
assets worldwide across different
asset classes and investments with specific
risk and return characteristics.
In certain cases, you could
lose not only your investment property but your other
assets may be at
risk as well.
While SPDR Gold Trust (GLD) as well as CurrencyShares Japanese Yen Trust (FXY) did not genuinely catch fire until the start of 2016, while PowerShares U.S. Dollar Bullish (UUP) has actually
lost a bit of ground year - to - date, the fact remains that all three of these «
risk - off»
assets have outperformed Vanguard Total U.S. Stock Market (VTI) since QE3 ended (12/18/2014).
This portfolio invests in derivative instruments such as swaps, options, futures contracts, forward currency contracts, indexed and
asset - backed securities, to be announced (TBAs) securities, interest rate swaps, credit default swaps, and certain exchange - traded funds that involve
risks including liquidity, interest rate, market, currency, counterparty, credit and management
risks, mispricing or improper valuation, low correlation with the underlying
asset, rate, or index and could
lose more than originally invested.
Your money will be redistributed to other
asset classes, potentially limiting the
risk of
losing these gains.
Other investments carry a low
risk of you
losing the money you pay for the
asset.
But take care: All investments carry
risk that you will
lose some or all of the money you spent to buy the
asset.
There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which
asset class you trade (equities, options or futures); therefore, you should not invest or
risk money that you can not afford to
lose.