Sentences with phrase «risky asset declines»

This protects them at the risk of making the crisis worse for everyone else as the prices of risky asset declines after liquidations.

Not exact matches

Gold prices have seen a steady decline since a 2011 peak as the bull market stretched on and riskier asset classes found favor over safe havens.

Benchmark spot gold prices were on course for an over 1 percent decline this week, pressured by a thaw in tensions on the Korean peninsula and a stronger dollar as investors looked to riskier assets such as equities.

Since 2012, however, interest rates have continued to decline along with my risk tolerance for investing in more risky assets.

On the one hand, declining bond market activity and the persistence of low - risk arbitrage opportunities imply liquidity is impaired, while, on the other, low volatility and high demand for risky assets suggest that liquidity is alive and well.

Stretched valuations, high levels of uncertainty about the macroeconomic backdrop and tight correlations would seem to warrant a closer look at assets that can help offer true diversification benefits and downside protection in the event of another synchronized decline across a whole spectrum of riskier assets.

Empirical studies find that household savings will typically decline when interest rates fall.17 This suggests that workers, instead of saving more, generally choose to invest in riskier assets, work longer or earn lower retirement incomes.

Likewise, as certain assets decline in value they become less risky relative to other assets.

Like the other approaches, it keeps some money in less risky ballast assets to help minimize portfolio declines and gives you more time to wait out any bad luck stock market crashes before having to sell any stocks.

Cash feels safe in the short - term, but in the long - term it is the riskiest asset because it is guaranteed to decline in value relative to inflation.

The Manager views such liquidity as a strategic asset and may invest a significant portion of cash and liquid assets in other more risky securities at any time, particularly under situations where markets are weak or a particular industry's securities decline sharply.

When too many unprepared people are fully invested in risky assets, there's a nasty tendency for the market to have a significant decline.

We know that assets tend to become more risky as they increase in price and less risky after price declines, yet the majority of investors react to asset price changes without understanding that chasing performance often means chasing higher risk.

It is also important to slowly move your portfolio into less risky assets as you grow older to protect the growth of the portfolio from potential short - term market declines.

There are several factors that indicate the cycle's best years are in the past, Colliers International Chief Economist Andrew Nelson wrote in the company's 2018 Outlook report, including slowing deal volume, eight consecutive months of declining commercial property prices, plateaued cap rates, a widening divide between seller asking prices and buyer bids and investors going in search of riskier assets for better returns.»