Sentences with phrase «risk over a long horizon»

That's because they're looking at risk over a long horizon - up to 20 or 30 years - and have to make precise pricing adjustments even for small risks.

Not exact matches

Fidelity believes one of the best ways to do that over the long term is by considering an appropriate amount to invest in a diversified portfolio of stock mutual funds, exchange - traded funds (ETFs), or individual stocks as you plan and implement an investment strategy that fits your time horizon, risk preferences, and financial circumstances.

If the speculative bubbles and crashes across market history have taught us anything (particularly the repeated episodes of recklessness we've observed over the past two decades), it's this: regardless of the level of valuation at any point in time, we have to allow for the potential for investors to adopt a psychological preference toward risk - seeking speculation, and no amount of reason will dissuade them even when that speculation has already made a collapse inevitable over a longer horizon.

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.

Currencies are complicated, and we believe that taking FX risk is not rewarded over the medium to long - term investment horizons of most investors.

That's not just because of wobbly data and economic risks on the near - term horizon; it's also because of the way the Bank has begun to see the Canadian economy evolving over the long run.

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).

The yield curve typically slopes upward to reflect the increased risk associated with lending over longer time horizons.

While I am taking on more risk, I can still sleep well at night knowing that over the long horizon my portfolio will likely have more volatility, but it will have greater returns (which can compound into even greater returns).

UVXY is intended for short - term investment horizons, and investors holding shares over longer - term periods may be subject to increased risk of loss.

In the long run (i.e. over Morgan's stated time horizon), DeGoey notes that the expected return would be comparable, but the expected risk would almost certainly be much lower.

While factors have exhibited excess risk - adjusted returns over long time periods as seen above, over short horizons factors exhibit significant cyclicality, including periods of underperformance.

Over the (very) long run, equities out - perform bonds and cash, as is evident below, but may not be practical alternative to bonds for many investors, because of investment horizon, risk - tolerance, dependence on yield, or all the above.

With a sufficiently long time horizon, there is little risk to stock investing, because the impacts of stock volatility become less over time.

Fidelity believes one of the best ways to do that over the long term is by considering an appropriate amount to invest in a diversified portfolio of stock mutual funds, exchange - traded funds (ETFs), or individual stocks as you plan and implement an investment strategy that fits your time horizon, risk preferences, and financial circumstances.

The real money sellers had to have a longer time horizon, and say «We know that over the next ten years, we will be easily able to beat a sub-2 % return, and we can live with the mark - to - market risk.»

Investors earn the carry as their return if spot prices do not change, and risk manifests through changing spot prices.5 Momentum and value, in contrast, aim to take advantage of those changes in spot prices — momentum over the short run, and value over longer horizons.

You have a medium to long - term investment time horizon (i.e., over 3 years) and a low to moderate tolerance for risk.

Over a long - term investment horizon, the S&P SmallCap 600 has outperformed the Russell 2000 with less risk.

It is well established that low volatility strategies deliver higher risk - adjusted returns than the broad - based, market - cap - weighted benchmark over a long - term investment horizon.

This is especially true because you can mostly eliminate price risk by timing (unless you buy a lot of stocks in 1999, 2007, etc. you will dollar cost average into a decent enough stock price) and most macroeconomic risks dissipate over a long enough time horizon.

Other important factors to consider include the fund's objective and strategy, cost, and pre - and post-tax returns over the long term, along with the investor's personal objectives, time horizon, and risk tolerance.