Sentences with phrase «risky assets»

Historically, over long periods of time, money invested in riskier assets such as stocks has generally rewarded investors with higher returns than funds invested in ultra safe and liquid assets.

This means investors who want higher returns must consider taking on greater risk — by increasing leverage or moving into riskier asset classes.

That can have a temporary effect on the prices of risky assets like stocks.

For now, if a correlation with stocks does exist, some analysts have suggested that cryptocurrencies such as bitcoin could be an indicator of appetite for risky assets such as equities.

So central banks are pushing investors into riskier assets?

More specifically, investors have sought the potential for higher returns from riskier assets like private company stocks, as safer investments like T - bills and bonds pay out next to nothing.

Historically, over long periods of time, money invested in riskier assets such as stocks has generally rewarded investors with higher returns than funds invested in ultra safe and liquid assets.

They shift from risky asset classes (such as equities) to less risky ones like real estate that provide constant flow of income.

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.

Specifically, you simply move along the efficient frontier and into other risky assets with lower risk and more diversification, e.g. bonds.

Demand for more risky assets has been the general theme today.

But when many parties have financed long risky assets with loans that need to be renewed in the short - term, the effect on the markets is multiplied.

Knowing what we know now, wouldn't we all love to have a second chance to buy risky assets at 2008 valuations?

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

People accept the possibility of losses from risky assets because they believe returns will be larger over time.

But you don't buy bonds for total returns; you buy them for income, and diversification; they tend to do well when risky assets break down.

So, deductions on 401k makes people save for their pensions in specially selected funds, instead of spending money immediately or maybe investing them in very risky assets.

He focused on fundamentals, and especially looked for a solid balance sheet making sure the insurer did not hold risky assets such as junk bonds.

The first rule is most important, because the most important thing here is avoiding panic, leading to selling risky assets when prices are depressed.

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

Because if riskier assets could be counted on for higher returns than they wouldn't be riskier.

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.

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.

That is liquidity, and as such most risky assets do not have significant liquidity, though many trade every day during bull markets.

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

When you combine risky assets together, the overall risk of the portfolio goes down — that's one of the main principles of diversification.

This deal is designed for institutional investors and those investors have been demonstrating they are willing to take on risky assets paying higher yields.

The odds of at least one large bad streak of returns on risky assets during retirement is high, and few retirees will build up a buffer of slack assets to prepare for that.

Unlike the dramatic reversal in the markets yesterday, investors simply wanted to dump risky assets such as stocks.

That said, let diversification handle uncertainty, and within risky assets trade away less promising assets for those with more promise.

Do I disagree that correlations begin rising among risky assets toward the end of a bull market?

In other words, true long - term investors are more willing to allocate towards risky assets because they don't care about the short - term ups and downs.

They believe that only risky asset classes can provide good returns.

Those looking to convert risky assets into predictable income streams by purchasing bonds or annuities may be disappointed to learn how relatively little income they can acquire with a given level of wealth.

One topic that's likely to be under the microscope this year is whether risky assets are appropriately priced.

That might help explain why investors - though not avoiding risky assets altogether - seem to be turning more selective.

Most bubbles involve risky assets, and are driven by greed.

At base, an absolute value discipline holds that you should not put money into risky assets unless you're being more than compensated for those risks.

Essentially, a high level of greed means participants favor riskier assets while a reading of fear signals a flight to safety.

The theoretical diversification of risky assets based on correlation measures calculated over long time periods is no longer valid.

Number 1: I introduced earlier the 1 / n rule — be as broad as you can in whatever risky assets you are investing in to minimize the risk.

Make sure you have liquid safe assets to complement risky assets.

I think adjusting to riskier assets earlier in your retirement plan is a good idea.

First, office property in particular and property in general are competing for investment capital with alternative risky assets such as bonds and stocks.

So if I am looking at a portfolio of risky assets, I would split each asset into two.

Investors may be betting that central banks will only slowly tighten policy, supporting demand for riskier assets.

In addition, workers will not invest all their contributions in the stock market, preferring instead to invest some funds in less risky assets, like government bonds, where yields are lower.

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.