Sentences with phrase «risky asset markets»

6) Risky asset markets need to rise much more frequently than they fall, and the rises should be slower than the falls.

I suspect the FOMC will tighten in December, but remember that the FOMC doesn't have a roadmap for the environment they are in, and they are acting like slaves to the risky asset markets.

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.

2) Stop trying to support risky asset markets.

Not exact matches

It could mean going into a Canadian equity growth mandate, buying emerging markets, or playing with even riskier assets.

Whether it is stricter regulations, negative interest rates, or fragile confidence, banks and other market participants are less than keen these days to hold large piles of risky assets.

European markets closed marginally higher on Tuesday as tensions between the U.S. and North Korea showed signs of subsiding, prompting investors to return to riskier assets.

«So they're more willing to bet on the market and stocks and risky assets.

Financial markets have reacted positively to Xi's conciliatory speech, bidding up riskier assets such as stocks and commodity currencies like the Australian dollar.

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.

«In a strong market, people tend to take more risks and move into some riskier assets.»

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.

In this case, emerging markets have suffered the most as investors fled risky assets for the safety of U.S. government treasuries.

A portfolio that has more risky assets like equities tends to rise more in positive markets and suffer greater losses in negative markets.

However, when evaluating the enthusiasm in today's market for farmland, I am reminded of the investing adage that it is not assets that are risky, but human behavior that makes them so.

With market volatility hitting multi-decade lows, junk bond yields also at record lows, the median price / revenue ratio of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the potential for an abrupt «air pocket» in the prices of risky assets that could attend even a modest upward shift in risk premiums.

«Liquidity,» in fact, is THE watchword now in bond trading — ironic, considering that the U.S. central bank's primary intention has been to boost the flow of cash through financial markets, drive a push toward riskier assets like stocks and corporate credit, and thus generate a wealth effect that would spread through the economy.

Market complacency, evidenced by the relative richness of risky assets, is a clear and present danger.

As global investors continue to reprice expectations for structural reforms in the US and Europe, capital will continue to migrate into growth assets and safe - haven investments as an alternative to markets perceived as riskier.

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.

Federal deposit insurance, since its birth in the 1930s, has meant that a comparatively risky bank (one with capital less adequate to cover potential losses on its asset portfolio) no longer faces a penalty in the market for retail deposits.

This is how riskier asset classes, such as emerging markets, can improve returns and reduce portfolio risk even though an asset class may be considered volatile on its own.

Non-asset holders were punished — their bank deposits now generate little or no income, and they were forced to move into riskier assets, such as stocks, bonds, real estate, or «anything that offers some yield and is not bolted down to the floor» (please see my answer to What kind of market distortions does the Fed loaning out money at 0 % cause?).

Central bank intervention in global bond markets has «crowded out» many traditional fixed income investors, driving them to seek yield and income from non-traditional and riskier asset classes such as high yield, emerging markets debt, leveraged loans and private credit.

Also, financial insiders are still reporting there is a lot of cash on the sidelines after people stopped investing in equities and other risky assets during the bear market.

The consequences — sharp capital - flow reversals that are now hitting all risky emerging - market assets — have not been pretty.

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.

For now, we are currently seeing the anticipated liquidity reduction harvest of wind in what are academically considered the riskiest of assets — emerging market equities and bonds, currencies, and commodities — as equities of developed countries such as the US, Japan and some European nations have continued to hold up.

While the stock market will rebound sooner or later, the events of the past few weeks are a reminder that chasing maximum returns by investing predominantly in risky financial assets is... risky.

With fully two - thirds of its money invested in domestic and foreign stocks, private equity and «absolute return strategies» (i.e., hedge funds), the New York State pension fund has a risky asset allocation profile typical of its counterparts across the country — because chasing risk is its only hope of earning 7 percent a year in a market where the most secure long - term bonds yield barely 2 percent.

One of the more unique aspects of this year's market is that both risky assets as well as investments that seek to hedge those risks are advancing simultaneously.

Although recently rising prices for stocks, high - yield bonds, commodities and other riskier assets would suggest otherwise, investors remain skittish over the still unresolved and quite concerning risks facing financial markets, such as the U.S. presidential election, the potentially prolonged post-Brexit renegotiations, Italian bank solvency and a slowing China.

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.

Market complacency, evidenced by the relative richness of risky assets, is a clear and present danger.

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).

He defines market timing as being 100 % in a risky asset or 100 % in a low risk asset such as cash.

Yes, there will be slightly larger short - term losses with the addition of the more risky asset classes, but these asset classes also rebound much faster when the market turns around.

FGIC and other bond insurance companies have been hobbled by their expansion into guaranteeing risky collateralized debt obligations (CDOs) and asset backed bonds, markets that have been hammered by rising mortgage losses.

That imbalance of eagerness between buyers and sellers has clearly affected prices of risky assets, but it does not generate new cash flows - it simply raises the valuation that the market places on existing streams of future cash flows, and thereby lowers the subsequent rate of return on holding those securities.

You keep your risky assets in a separate long - term bucket and avoid selling them when markets are down.

(Pro tip: It's actually quite easy to outdo the market at large over the short term just by getting lucky or investing in risky assets in a good year.

But in a section is called «High Risk = Low Returns,» Rustand argues that asset classes «such as Asian, emerging markets, or precious metals tend to have low long - term returns compared with less risky alternatives.»

Markets are experiencing an intense case of risk off sentiment, as investors flee from riskier assets in pursuit of safe havens.

This is simply because at various times in market cycles either stocks or bonds could be the most risky asset class.

Being a homeowner in this market is risky enough, but to fail to protect one of your biggest personal assets is to ask for financial calamity.

Diversification will only reduce the volatility of your portfolio's returns down to the level of the total market's own volatility, but your choice of risky assets may predispose you to additional price swings.

Most of the time, they say to make it so as soon as they see you have a system using more than a few asset classes, the returns are good compared to the markets, there's a healthy amount of bonds, you're recommending small amounts of risky asset classes, you're not trading stocks / ETFs, not trying to predict the future, and you're using mutual funds in a mostly «buy and hold» fashion.

This is how riskier asset classes, such as emerging markets, can improve returns and reduce portfolio risk even though an asset class may be considered volatile on its own.

The result: higher prices for riskier assets like equities and tighter spreads for high yield and emerging market (EM) bonds.

In addition to yields being driven towards record lows and stock markets to record highs, many investors were pushed towards riskier assets while the cost of capital was kept artificially low.