Sentences with phrase «risk than the market average»

Similarly, if the office property under consideration entails greater risk than the market average (due for example to higher vacancy rate or poor location) then it should command a higher capitalization rate.

Not exact matches

Nor can every product be built for prices the average Joe is willing to risk (for example, the next Tesla automobile), or be brought to market for less than $ 10 million (e.g., the next generation of cholesterol drugs).

World growth will remain low on average but negative in the UK and Europe; price inflation will remain sufficiently subdued for a while longer so as to impose no constraint on monetary expansion; central banks will sustain a regime of negative real interest rates and rapid monetary expansion; the risk of a eurozone collapse is off the table for now; finally, stock markets should continue to perform better than expected, even though the four - year old cyclical bull market is long by historical standards.

When volatility is average, options prices will typically be a little lower than during a bearish market and that might cause options that are farther out of the money to be priced so low that the risks involved outweigh the profit potential.

Logically, by taking more risk — in paying up to own «growth» stocks at higher multiples than the market average — one should expect to achieve higher 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.

Basically, a Market Climate says «when these conditions were historically true, here is the set of returns that the market had - some are positive, some are negative, but look, the average return / risk profile is different in this Climate than in the other ones.&Market Climate says «when these conditions were historically true, here is the set of returns that the market had - some are positive, some are negative, but look, the average return / risk profile is different in this Climate than in the other ones.&market had - some are positive, some are negative, but look, the average return / risk profile is different in this Climate than in the other ones.»

Note that they also cause the group in question to be more resilient in case of a market crash than the average person with about no savings (note that market crashes lead to increased risk of job loss).

To me, one of the advantages of a proper active investing approach is that you are able to go for stocks with a bit lower risk level than the overall market, rather than be forced to accept the «average» market risk.

I want to follow my own risk profile in picking investments, rather than implicitly take on the average risk profile of the overall market at that particular moment.

In my small unique book «The small stock trader» I also had more detailed overview of tens of stock trading mistakes (http://thesmallstocktrader.wordpress.com/2012/06/25/stock-day-trading-mistakessinceserrors-that-cause-90-of-stock-traders-lose-money/): • EGO (thinking you are a walking think tank, not accepting and learning from you mistakes, etc.) • Lack of passion and entering into stock trading with unrealistic expectations about the learning time and performance, without realizing that it often takes 4 - 5 years to learn how it works and that even +50 % annual performance in the long run is very good • Poor self - esteem / self - knowledge • Lack of focus • Not working ward enough and treating your stock trading as a hobby instead of a small business • Lack of knowledge and experience • Trying to imitate others instead of developing your unique stock trading philosophy that suits best to your personality • Listening to others instead of doing your own research • Lack of recordkeeping • Overanalyzing and overcomplicating things (Zen - like simplicity is the key) • Lack of flexibility to adapt to the always / quick - changing stock market • Lack of patience to learn stock trading properly, wait to enter into the positions and let the winners run (inpatience results in overtrading, which in turn results in high transaction costs) • Lack of stock trading plan that defines your goals, entry / exit points, etc. • Lack of risk management rules on stop losses, position sizing, leverage, diversification, etc. • Lack of discipline to stick to your stock trading plan and risk management rules • Getting emotional (fear, greed, hope, revenge, regret, bragging, getting overconfident after big wins, sheep - like crowd - following behavior, etc.) • Not knowing and understanding the competition • Not knowing the catalysts that trigger stock price changes • Averaging down (adding to losers instead of adding to winners) • Putting your stock trading capital in 1 - 2 or more than 6 - 7 stocks instead of diversifying into about 5 stocks • Bottom / top fishing • Not understanding the specifics of short selling • Missing this market / industry / stock connection, the big picture, and only focusing on the specific stocks • Trying to predict the market / economy instead of just listening to it and going against the trend instead of following it

It's one stop shopping for the average investor offering returns linked to the broad market, less work, lower risk than individual companies and low cost.

This greater risk is, in part, attributable to the fact that small and mid-cap companies may have limited product lines, operating history, markets or financial resources and their securities may therefore be more volatile than securities of larger, more established companies or market averages in general.

Low - risk stocks do better than stocks as a whole because their return is only slightly lower in bull markets and is much better than average in bear markets.

By making changes over time, they capture the market average rather than take the risk of hitting a peak or valley.

The first item is a recently released report from the Investment Company Institute (the trade group for mutual fund companies) which revealed that the average mutual fund investor's willingness to take risk is lower now than it was two years ago before the market experienced its well publicized unpleasantness.

Returns of 1 % or less are not impossible for bond investors and with both low interest rates and market fundamentals suggesting stocks will produce below - average returns, taking calculated risks now may be more important than ever.

Investing in smaller, newer companies generally involves greater risks than investing in larger, more established ones and are subject to more abrupt or erratic market movements than larger, more established companies or market averages.

Instead, we believe that some market conditions may have a higher average return / risk tradeoff than others, and that these conditions can be identified in a disciplined way.

Some active strategies that appear significantly better than passive investing have positive relative return not through distinctive stock (or other investment vehicle) picking or timing, but since their active investment strategy effectively increases their market risk exposure (higher average beta of their holdings, perhaps via a not even deliberate choice of which market segments they overweight).

So, if you can just show, for example, that the odds of a stock market crash are far higher in years when the P - E ratio is much higher than average (or for housing crashes the buy - rent, or price - household income ratio), or that the expected risk - adjusted long run return is much lower than average, or other «anomalies» (anomalous to the EMH) like this, then you can show that the EMH is substantially far from the truth.

Volatility returned in the first quarter and the VIXA more than tripled from its prior 12 - month average in early February.B Equity markets sold off in parallel as the S&P 500 IndexC experienced its first correction in years.D Most major equity markets finished the quarter in the red, and the sharp decline was a reminder of the importance of diversification and risk management.

Vanguard Emerging Market Index fund's (VEIEX) total risk index of 1.59 may seem high when compared to other stock funds, but the fund incurs less risk than the average emerging marketMarket Index fund's (VEIEX) total risk index of 1.59 may seem high when compared to other stock funds, but the fund incurs less risk than the average emerging marketmarket fund.

In March 2006 shortly after the release of Joel Greenblatt's book The Little Book That Beats the Market James tested the strategy worldwide and in this article called The little note that beats the markets found that on average the Little Book strategy beats the markets by around 7 % p.a. between 1993 - 2005, and with lower risk than the mMarket James tested the strategy worldwide and in this article called The little note that beats the markets found that on average the Little Book strategy beats the markets by around 7 % p.a. between 1993 - 2005, and with lower risk than the marketmarket!

A March 2013 report by the Institute of Market Transformation titled «Home Energy Efficiency and Mortgage Risks» (3.0 MB) found that the risk of default was on average 32 percent lower in ENERGY STAR certified homes than in homes that did not earn the ENERGY STAR label.

«In the high - risk, high - yield markets, where unemployment and vacancy rates are higher than national averages, the average return was a whopping 19 percent, actually up from a year ago thanks to a strong increase in rental rates,» Blomquist continued.

If their home is not moving quickly, a proactive price adjustment may help them protect their overall investment without risking the stigma of a longer - than - average market time.

A 2013 study co-authored by the Institute for Market Transformation and the University of North Carolina found that, on average, mortgage - default risks were 32 percent less for energy - efficient homes than comparable nonefficient homes.