Sentences with phrase «riskier assets which»

As your time horizon increases, you can shift into riskier assets which typically provide a better return over time.

You end up taking more risk by buying riskier assets which pushes up its price causing you to feel wealthier.

At that point, the demand runs out, the price stabilizes and investors are left holding a very risky asset which is not appreciating.

Not exact matches

As a result, risky asset classes such as equities and commodities will be assigned much higher reserve requirements than bonds, which is why some insurance industry players are already dumping equities to hold a greater proportion of bonds.

The market expecting the Fed to remain on hold, which «should allow premia to return in the curve» and limit a downturn in risky assets.

My point was and is that the equity risk premium is bundled up closely with the nature of the security itself (i.e., being a publicly traded, relatively liquid investment asset called an equity, that has a very specific bundle of rights and risks attached to it), which has very different characteristics than the many other financial assets available in the economy (many of which have bundles of risk that are perceived as «riskier», and many of which are perceived as «less risky»).

You make a list of a bunch of asset types and figure out — through various efforts by banks, regulators, ratings agencies, whatever — which ones are riskier.

Since March 2009, the S&P 500 Index has had a total return of approximately 250 %, driven by two primary factors: First, super-easy global monetary policy in the wake of the banking crisis, which drove down returns on safe assets to the point where risky assets became a much more compelling proposition than is typical.

Unfortunately, in a world in which cash pays next to nothing and even riskier assets, like stocks and bonds, have a lower long - term expected return than they once did (according to a BlackRock analysis using Bloomberg data), holding a sizeable portion of one's retirement savings in cash could prevent many from reaching their financial goals.

For a year in which risky assets continue to grind higher, assets offering potential hedges against those risks are doing remarkably well.

Covariance is a measure of the degree to which returns on two risky assets move in tandem.

This fear is understandable, given that a rate hike could lead to higher yielding U.S. Treasuries, which would attract yield seekers away from riskier emerging market assets.

Broadly speaking, portfolios are split into a number of different «asset classes» like stocks and bonds, which vary in terms of how «risky» they are.

If were going to have fiat money, do it in such a way that bubbles do not develop, which means not caring about the effects of policy on risky asset markets.

When reading «The Intelligent Investor» they claim that you can increase you position to 100 % stocks (risky) if you meet a number of criteria, one of which is liquid assets to pay for living expenses for 1 year.

You first need to consider how much you want in risky assets (which essentially means stocks) and how you are going to divvy up that between Canadian stocks and foreign stocks.

Up to 20 % of the Funds assets may be invested in convertible securities, and these securities may not have an investment - grade rating, which would make them riskier than securities with an investment - grade rating.

Over the long run, a risk parity strategy (which is to say, generally being long both risky and less risky assets) is a highly effective way to provide diversified exposure through the ongoing ebb and flow of market cycles.

Money - market funds, which are big buyers of commercial paper, are spooked by possible contagion from subprime mortgages, or risky home loans granted to low - credit home buyers, and are shunning commercial paper backed by assets.

Another of his ideas is that the seemingly - permanent increase in valuations for risky asset classes is a valid response to «improvements in the way a market functions... which lead to reductions in the costs of those who use it.»

We can see this dynamic at play in the figure below, which looks at the correlation between the amount of money flowing into risky assets (emerging markets, high yield debt) and the balance sheets of the four largest central banks.

However, if the U.S. and world stock markets start to lose steam, which early clues suggest could already be the case, then safe - haven gold would benefit as money starts to flow out of the riskier asset class, equities.

The company requires a general lien on business assets (UCC - 1 filing) and a personal guarantee, which makes the loan more secure for the lender but can be riskier for borrowers.

The Great Recession affected asset classes in different ways as riskier securities (e.g. those, which were more leveraged) were sold off in large quantities, while simpler assets, such as U.S. Treasury Bonds, became more valuable.

The overpricing of assets was sustained in part by a sort of circular process, in which the proliferation of risky lending drove up the prices of risky assets, making the financial condition of the intermediaries seem sounder than it was.

In general, although volatility can change on any asset (i.e., TLT is a good example), fixed income assets are less risky than higher - yielding income; large cap dividend stocks are not as risky / volatile as large cap growth or small caps, which are not as risky as foreign and emerging equity and so forth.

However, the success or failure of their financial plan is subject to greater variability, since they have a greater dependence on more risky investment assets, which may or may not deliver the returns that they expect.

One measure that combines risk and return is the Sharpe ratio, which describes how much excess return you receive for the extra volatility you endure by holding a riskier asset — the higher the number, the more return you are getting for the risk.

This investment asset class is often considered less risky than buying stocks which isn't always true since some fixed income investments are very risky.

Financial analysts refer to this as a «barbell» approach in which extremely low - risk assets hopefully counterbalance riskier ones.

The oil price collapse, which follows a drop in global coal prices, shows that the global fossil fuel sector is presently one of the world's riskiest asset classes.

These charges would subsidize risky capital investments in the Company's coal assets — several of which have been determined by other owners to have value and be unreliable.

You can invest in equities which although risky give higher returns than assets like gold and property.

This policy also offers an investment strategy, which makes funds flow from riskier to less risky assets, as you approaches the time of vesting.

It does not matter which asset it is, becoming in debt to invest in a particular asset or asset class is highly risky.

The CMBS market, which traditionally soaks up the riskier loans in secondary markets or on assets that have challenges, has not come back in the same way.

Also NSAM has the ability to earn incentive fees each quarter based on NRF's cash available for distribution (or CAD) which may create an incentive for NSAM to invest in assets with higher yield potential, which are generally riskier or more speculative, or sell an asset prematurely for a gain and pay down borrowings, in an effort to increase its short - term net income and thereby increase the incentive fees to which it is entitled.