Sentences with phrase «riskier than an investment»

As these bonds are riskier than investment grade bonds, investors expect to earn a higher yield.

I'm sure other shareholders will express their displeasure at such a potentially risky loan, but let me offer my own perspective: While a single loan obviously presents a binary risk, on average it's really no more risky than an investment in TAF.

• They are considerably less risky than investments in properties that are vacant and produce no income upon acquisition; in such a case the investor takes significant risk as he / she does not know when a tenant will be found and when found what the exact income of the property will be

Not exact matches

And when there's no other compelling use for a company's cash, this is a better alternative than risky spending on takeovers or other big investments.

Franchisees might intentionally or inadvertently promote their established franchise brand as being a less risky investment than a mom - and - pop shop, putting them at risk for charges of fraud.

Investment - grade corporates pay about two percentage points more than short - term government bonds, and they're less risky than they used to be.

Even then the project was huge and risky — an $ 11 billion terminal and a $ 7 billion pipeline to a still - developing gas play banking on the hope that the extraction, shipping, and liquefaction costs would combine to be less than global LNG prices and allow a return on investment.

«Purportedly «risk - free» long - term bonds in 2012 were a far riskier investment than a long - term investment in common stocks,» he continued.

But Heck, who believes renewables could generate 50 percent of energy in 2039 and that most vehicles will be electric, said PE firms often think renewables are a riskier investment than they really are and should be doing more in the space.

It's a little riskier than holding a big bank in your retirement account, but if you don't mind owning a $ 205 million market - cap business then there could be some good upside ahead, says Bruce Campbell, president and portfolio manager at Kelowna - based StoneCastle Investment Management.

Studies of investment - fraud victims in particular have shown that more known victims had previously invested in risky investment instruments like oil - and - gas options, penny stocks, and gold coins than the general public had.

While these funds have the potential to provide high income and total returns, they are riskier and more volatile than their investment grade counterparts.

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»).

While stocks are riskier than bonds or cash investments, they have much higher returns over the long run and many issue dividends on top of this.

Holding anything other than the sorts of securities / investments generally available to the public (or at least segements of the public) is a risky proposition.

If someone alerts you to an investment that is allegedly safe but pays a much higher return than an FDIC - insured saving account, that's a risky investment in disguise.

«In a horrible, truly worst - case scenario, a high - quality bond index fund is still less risky over the course of a year than stocks are in one day,» says the investment adviser Allan Roth, founder of Wealth Logic in Colorado Springs, alluding to the 20 percent decline in the Standard & Poor's 500 - stock index on Oct. 19, 1987.

Investors have been taught that large - cap equities tend to be less risky investments than small - cap equities.

We believe in long - term investing, but we don't want to put ourselves in a situation where we take more risk than necessary by having money slated for short - term goals in riskier investments.

As you've probably figured out, mortgage REITs are more leveraged, meaning that they're riskier investments than equity REITS.

These bonds are considered risky investments and tend to pay higher interest rates than Investment grade debt.

Most bonds (not junk bonds) represent a less risky investment than most stocks, which means that stocks have to offer a higher return as a premium for increased risk.

We found that diversified portfolios have, in fact, been less risky, but only up to a point: A portfolio that allocates 60 % or more of its investments abroad has actually taken more risk than one that doesn't diversify at all — an interesting revelation.

It's true that some investments are considered riskier than others.

In this way, these start - up companies are actually far riskier investments than their more price - volatile public counterparts.

As an investment, a drug that is in the discovery or pre-clinical stage is a very risky proposition, with less than a 1 % chance of getting to market (according to an industry report published in 2003 by the Pharmaceutical Research and Manufacturers of America).

Second, 0 % interest rates and excess liquidity from Quantitative Easing made it attractive for companies to grow their earnings per share via share buybacks and acquisitions rather than the riskier investment approach.

AIG was a decidedly more risky investment when he left than in the late 80s, when the balance sheet had virtually no debt.

Also, putting a large amount of your money into a single investment — like a house — could be riskier than spreading your savings out across a portfolio of investments.

I don't want to mislead in this article because the investments I will be discussing are a bit riskier than FDIC insured certificates of deposit or government bonds.

This article illustrates how one of the most popular financial metrics, the debt - to - equity ratio, can sometimes make an investment appear much riskier than it actually is.

I'll even make the bold statement that P2P investing is less risky than many other high - yield fixed - income investments.

As an investor's investment horizon lengthens, however, a diversified portfolio of U.S. equities becomes progressively less risky than bonds, assuming that the stocks are purchased at a sensible multiple of earnings relative to then - prevailing interest rates.

They are riskier than bonds issued by higher rated investment - grade companies, so they often offer higher yields.

And, although I agree that lenders should consider the investment on the high - risk side, I'm not convinced that it is much riskier than the stock and bond market - AT THIS TIME.

Beta — A measurement of how risky an investment is, with 1 being neutral, above 1 being more volatile, and less than 1 being less volatile.

Foreign investments can be riskier and more volatile than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions (e.g., «Brexit»).

Some investments are riskier than others, and the riskier the investment, the higher the potential reward, and vice versa.

That's less than the 12.2 percent the city could have earned — another $ 1.9 billion — if it invested the money in reliable, low - cost S&P 500 Index and Core Bond funds and avoided risky, expensive hedge funds, private equity and real - estate investments.

I find that the conventional plays expose juniors to a less risky scenario with higher returns on investment and longer - term production more often than not.

They hypothesize that loss averse investors may perceive value stocks as riskier than they truly are, given the stocks» recent underperformance, and may therefore require a higher future return from these investments.

If you put your $ 5,000 into a riskier asset class such as stocks (ie a stock mutual fund) then in 6 months your investment might be worth more than $ 5,000 or it could be worth less than $ 5,000 (possibly a lot less).

For fear of risk, if one avoids equities or equity funds (or investments which can beat inflation + taxes) then not investing sufficiently in these options can be more riskier (risk of wealth erosion) than actually investing.

With 10 - year Treasuries yielding less than 2 % today (from Bloomberg data), investors unwilling to accept such low income may need to direct their investments across riskier assets in the search for yield.

Riskier investments like second mortgages, or where a borrower has no income, the fees will be higher than for a bank loan.

Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions (e.g., «Brexit»).

Most bonds (not junk bonds) represent a less risky investment than most stocks, which means that stocks have to offer a higher return as a premium for increased risk.

«As the Moreaus get closer to retirement, owning a farm is actually a lot riskier than owning a well - diversified investment portfolio of equities and bonds,» says Franklin.

Wary investors opened accounts to stash the money they pulled out of riskier products, while others decided the freedom of a TFSA was better than the uncertainty of a standard mutual fund investment.

A private lender trying to avoid risky investments never provides loans to a property with more than 85 % LTV.