Sentences with phrase «risk of the given index»

Policies often offer a floor, to prevent market losses of greater than zero AND may cap gains at a certain rate depending upon the risk of the given index.

Policies often offer a floor, to prevent market losses of greater than zero AND may cap gains at a certain rate depending upon the risk of the given index.

Not exact matches

It makes sense to invest in stock index or mutual funds because they give you a broadly diversified portfolio of many stocks which reduces your risk of large losses from owning a single stock.

We still have some exposure to «basis risk» - the risk that our stocks perform differently than the indices we use to hedge, but given that both the broad market and some of our industry group holdings are oversold relative to the S&P 100, I believe that the some of this potential for basis risk was reduced by the recent decline.

I don't like giving up control of my investments to money managers who rarely beat indices over time, charge high fees, and can put clients at excess risk.

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.

Index futures, like the S&P 500 Index (NYSE: SPY), have become very popular as broader economic bets for day traders given their high level of liquidity and less stock - specific risk.

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.

Aside from acceptable «basis» risk between the stocks we hold long and the indices we use to hedge, and perhaps 1 % of assets in option time - premium at any given time as a result of staggering our strikes to provide a stronger defense, we don't consider various speculative bubbles as threats to our own returns.

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.

The brain health index may also give early warning of risk of future cognitive decline in individuals before they notice any symptoms.

The researchers concluded, «Given that both a high cereal fiber content and lower glycemic index are attributes of wholegrain foods, recommendation to increase wholegrain intake may reduce the risk of developing the metabolic syndrome.»

To minimize the confounding effect and test for potential modification by an overall lifestyle pattern, we further performed a stratified analysis according to a priori — defined healthy lifestyle pattern, as characterized by never smoking or ever smoking for fewer than 5 pack - years, never or moderate alcohol intake (< 14 g / d in women and < 28 g / d in men), body mass index (calculated as weight in kilograms divided by height in meters squared) of at least 18.5 and less than 25.0, and physical activity of at least 150 min / wk at a moderate level or at least 75 min / wk at a vigorous level (equivalent to ≥ 7.5 metabolic equivalent h / wk) as recommended.18 Likewise, given the previous report that protein intake was associated with a higher risk for diabetes - related mortality, 8 we examined the protein - mortality association according to the history of diabetes.

Nonetheless, given the relatively limited number of studies that have been carried out to evaluate the relation of glycemic index and / or load with CVD risk, further research is needed in this area.

The Overall Vehicle Score combines the results of a frontal crash test, side crash tests and rollover resistance tests and compares those results to the average risk of injury and potential for vehicle rollover of other vehicles to give vehicles an indexed single score that consumers can use for comparison when vehicle shopping.

The chance of an index fund outperforming one of your star managers (after costs) in any given year is quite high, because most investment returns come from simply accepting market risks (beta), which requires no skill.

An absolute return strategy is independent of traditional benchmarks such as the S&P 500 Index or the Barclays U.S. Aggregate Bond Index, which gives it the freedom to invest in a wide variety of securities as well as a variety of strategies to hedge specific types of risk.

Instead of giving you a low - cost way to copy the results of a standard market index, a lot of new ETFs aim to mimic much narrower indices and higher - risk strategies.

The index is calculated by optimizing the MSCI EAFE Index, its parent index, for the lowest absolute risk (within a given set of constraiindex is calculated by optimizing the MSCI EAFE Index, its parent index, for the lowest absolute risk (within a given set of constraiIndex, its parent index, for the lowest absolute risk (within a given set of constraiindex, for the lowest absolute risk (within a given set of constraints).

The index might have 100 bonds that fall into a given bucket, but we could select just a few bonds to help meet the risk characteristics of that bucket for the portfolio.

If given the data, one can easily compare the risk and return of an equally weighted portfolio of the entire dividend - paying universe of securities from within the S&P / TSX Composite Index with the risk and return of an equally weighted basket of the non-dividend paying equity securities from the same universe.

Most importantly, Countercyclical Indexing is a low fee and tax efficient form of asset allocation that tries to capture the market return given an appropriate level of risk over the course of the business cycle.

In other words, RAR gives us the rate of return that the fund manager would have obtained, had he / she been prepared to assume the same risk level as the index.

And that's on top of the fact that indexing like this gives you very little risk - adjusted excess return, or alpha.

With 340 stocks, it's meaningfully less diversified than a portfolio including both a «total U.S.» index fund and a «total international» index fund, which means you'd be taking on more risk for a given level of expected return, and

Given that 90 % of this portfolio would be expected to vastly outperform an indexed portfolio during market downturns (due to the risk management built into both DAA and Upgrading 2.0), it's amazing that it was able to nearly match a purely indexed portfolio during a year of such strong gains for stocks.

Underperformance of the HYLV index from carry and spreads in a spread - tightening environment is not surprising, given its lower yield profile and more defensive positioning of credit risk than the benchmark.

Instead of giving you a low - cost way to copy the results of a standard market index, many new ETFs aim to mimic much narrower indices and higher - risk strategies.

A portfolio that includes many stocks just because they have a big weight in the index (a result of their having gone up a lot) may go down sharply and still carry risk — no cushion there to begin with... An investor who buys a building or an entire corporation gives a great deal of attention to the price to be paid for the asset.

The risk for passive investment funds, including some of the big pension funds is particularly acute given they track the indices and would have followed Peabody's share drop regardless, until it fell out of the S&P 500 Index in September.

The UV index measures the amount of harmful radiation in sunlight reaching the earth's surface at a given location — where 0 indicates no risk, 1 - 4 indicates a low risk of overexposure and above 10 signifies an extreme risk.

It also gives the insured the opportunity to earn interest linked with the upward movement of a stock market index without the risk of investing directly in the market.

It also gives the insured the oportunity to earn interest linked with the upward movement of a stock market index without the risk of investing directly in the market.