I think you should always begin with risk tolerance and at any given time, if your investments are
riskier than your risk tolerance suggests they should be, you should become more defensive.
Not exact matches
«In one of our studies we found that people rated masculine
risk - taking behaviors as more
risky than feminine
risk - taking behaviors, even when they were matched for how
risky they were,» she says.
These assets are all
riskier, in the short run,
than plain - vanilla bonds, but a retiree with a long - term time horizon can't afford to shun the rewards that come with those
risks.
New ventures are usually exploratory and
risky by nature, so don't let any business plan process convince you to commit more
than you can
risk as a person, should your exploration fail.
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.
While entrepreneurs aren't any more comfortable with
risk, they might perceive a business scenario as less
risky than a non-entrepreneur.
If project A is far
riskier than project B, there should be a clear
risk premium that could accrue to the firm if project A is enacted.
«Purportedly «
risk - free» long - term bonds in 2012 were a far
riskier investment
than a long - term investment in common stocks,» he continued.
We believe the Statoil acquisition strengthens the company's business
risk profile by adding an established, profitable c - store and fuel retailer with a strong market share of more
than 30 % in the mature markets of Sweden, Norway, and Denmark with good growth prospects in
riskier, more fragmented Eastern Europe.
While it's better to invest
than keep money under a mattress, buying
risk free securities, such as guaranteed income certificates or low - yielding government bonds, could actually be
riskier than purchasing higher returning products, says Ted Rechtshaffen, president and CEO of Toronto's TriDelta Financial Partners.
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»).
However, these higher yielding bonds are often the most
risky, resulting in a lower
risk - adjusted return
than the broad market.
Values above 1.00 are
riskier than average and values below 1.00 are of less
risk than average.
Values above 1.00 are
riskier than average and values below 1.00 are of less
risk than average for the category.
This very low market volatility can lead investors to take on more
risk, and in a period of still relatively low interest rates, to «reach for yield» — that is, buy
riskier assets
than one would otherwise, in order to achieve a desired profit or savings goal.
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.
More flexible
than working with traditional investors and without fear that your niche product is too
risky, crowdfunding is an efficient and low -
risk method to bring innovative ideas to the market.
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.
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.
«While there are a lot of
risks out there, it feels less
risky than in the past 25 to 30 years,» Mark Zandi, chief economist for Moody's Analytics, told The New York Times.
Every action has
risks including inaction, we know that our strike force at the moment is not up to EPL winning quality, inaction means, we are ok with that, we are also ok to take a chance of injuries, just like Welbeck went down Giroud could too, in any case all I am trying to say is that not buying is just as
risky and can be even more so
than buying.
Triplets pregnancies are far
riskier than most people realize: Carrying three babies to term would more
than double the woman's
risk of developing the most severe diseases of pregnancy, such as preeclampsia.
Elective repeat C - sections are slightly
riskier than successful VBACs, because moms are at greater
risk of infection, blood loss and organ injury.
We also have tendencies to conform our opinions to those of the groups we identify with, to fear man - made
risks more
than we fear natural ones, and to believe that events causing dread — the technical term for
risks that could result in particularly painful or gruesome deaths, like plane crashes and radiation burns — are inherently more
risky than other events.
«
Risky Business: The Economic
Risks of Climate Change to the United States» — an analysis more
than a year in the making — projects losses across sectors and by region of the country.
Adolescents who have engaged in past
risky online behavior are much more likely
than older young adults to repeat the behavior in the future, according to a new study by researchers seeking to understand the psychological mechanisms contributing to young people's online
risk taking.
New York and Cleveland have been particularly
risky cities for blacks; in both cities, between 1960 and 2011, depending on the year, blacks»
risk of being killed by police ranged anywhere from 5 to 19 times higher
than that of whites.
«Substance - related problems such as binge drinking, driving under the influence of alcohol, and
risky sexual behavior are more important
than others due to their association with reckless driving, automobile accidents, physical injuries and even death, as well as
risk for sexually transmitted disease and unplanned pregnancy.»
Teenagers are known for taking unnecessary
risks, from reckless driving to smoking marijuana, but some seek out
risky experiences more
than others.
In one study of this effect, people rated cancer as
riskier when told that it «kills 1286 people out of 10,000»
than when told it «kills 24.14 people out of 100», even though the second statement equates to almost double the
risk (Applied Cognitive Psychology, vol 11, p 495).
More estrogen makes it
riskier A more significant
risk is the increased level of estrogen that the patch delivers — 60 % more
than the typical low - dose birth control pill.
Having read the excellent article you shared, I see it's a lot more
risky than a standard X-Ray and that a qEEG scan may be just as beneficial without
risks.
They may approach market dynamics in an aggregate form, but in that case all the boycott will succeed in doing is giving the publisher the impression that this Kindle thing is a high
risk venture (more so
than hard copy which is already a
risky proposition).
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.
Because of its subordinate position, the mezzanine loan assumes a higher
risk profile
than senior debt but retains a less
risky position
than preferred equity.
And lastly, it should have an intuitive reason to believe it should persist in the future, meaning that it should be a good
risk - based explanation, just like stocks are
riskier than bonds.
If our model predicts a higher loss potential
than you have specified for your portfolio, we will execute a reallocation from a
riskier asset class (such as stocks) into a lower
risk asset class (such as government bonds or money market funds).
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.
Countries with high projected growth rates are perceived as less
risky than those with low projected growth, and lower
risk usually means lower returns.
Let's say the
risk - free rate of return is 1 %, the market itself is expected to return 4 percentage points more
than the
risk - free rate (so the market's
risk premium is 4 %), and a stock has a beta of 1.5, which makes it more
risky than the market.
Bonds are usually seen as less
risky than stocks, but still carry some level of
risk compared to cash holdings.
A sector funds tend to be
riskier and more volatile
than the broad market because they are less diversified, although the
risk level depends on the specific sector.
According to Investor Junkie, student loans might be even
riskier than other investment options thanks in part to two main issues: lack of collateral and
risk of default.
Corporate bonds are far
riskier than government bonds, and the
risk on corporate bonds, varies widely.
Even a low
risk mutual fund is still
riskier than a bond.
Although 100:1 leverage may seem extremely
risky, the
risk is significantly less when you consider that currency prices usually change by less
than 1 % during intraday trading (trading within one day).
What it says is that when you invest in a
risky asset, you have to receive a return that is higher
than what you could get if you had invested in a
risk free security.
By that standard, purportedly «
risk - free» long - term bonds in 2012 were a far
riskier investment
than a long - term investment in common stocks.
There are inevitably some high -
risk lenders who exist and are willing to take a chance on what is considered a
risky mortgage loan, but the interest rates will reflect this by being much higher; therefore the monthly payment may be more
than what is realistically affordable.