Sentences with phrase «risky assets with»

Portfolio theory suggests combining risky assets with risk free assets, based on your risk tolerance.

Allocate the balance of the portfolio to the equally weighted 1, 2, 3, 4, 5 or 6 risky assets with the highest positive momentum (reducing the number of risky assets held if not enough have positive momentum).

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

It's reasonable these days to expect safe government bonds to return less than 3 %, so there's a gap that needs to be made up by investing in riskier assets with less reliable returns.

Do you believe that people like these firefighters from Florida, who are near retirement and have secure pensions with guaranteed monthly payments, should move their money into riskier assets with no guarantees just before they retire?

Not exact matches

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

He says: «When I'm dealing with a business owner, I always try to point out to him or her that concentration of assets is a very risky proposition.

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.

However, from a banker's perspective, a newly formed corporation is a more risky loan applicant than an individual with a home and other assets.

But taking out debt to buy an asset as volatile as Bitcoin — as some investors seem to be doing with their credit cards — is risky on a personal finance level.

These include difficulties in complying with KYC and AML rules when dealing with digital assets; losing business to less risk - averse companies that are willing to «engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies;» and (like J.P. Morgan) the potential need to spend large sums while attempting to keep up with shifting technological norms.

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»).

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.

These strengths limit the downside risk associated with Canadian assets, making Canada a rare safe haven in a risky world.

You then allocate the remainder of your savings to more and more risky assets commesurate with your willingless to not see the potential benefits in retirement.

While investors are often concerned about catastrophic risks, failing to allocate enough to risky assets can lead investors to «fail slowly» by not maintaining pace with inflation or supporting withdrawal rates.

Mixing cash with stocks is a barbell portfolio strategy with a very safe short - term capital preservation asset in one bucket and much riskier assets in another.

Much like real estate, online assets can be a risky but lucrative investment if you're comfortable with technology and enjoy being...

With $ 30 billion of assets to sell in the wake of its acquisition of BG, Shell is a riskier but possibly more rewarding bet on the oil price.

Young investors or investors with long time frames should hold a higher proportion of stocks or risky assets than older investors or investors with short time frames.

To be sure, global policy liquidity has played the lead role in pushing asset prices to new highs, with strong correlations across both risk - free and risky assets.

With paper assets using leverage is extremely risky since there is no control.

The lack of liquidity and higher leveraging of investments via crowdfunding platforms relative to REITs makes them much riskier, yet their incrementally higher promised returns and incrementally lower implied correlations with other asset classes don't seem to compensate for the added downsides.

With fears fading over U.S. military intervention in Syria, investors who had sought shelter in Treasurys switched back into risky assets.

Losses in risky assets will dissipate investor confidence, undermine economic activity, and leave the Fed with little choice other than to step on the accelerator for more easy money.

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.

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

However, greater stability in oil prices over the second half of the month — alongside the positive tone of economic data — helped spark a wider rebound in riskier assets, with equities collectively recovering a significant portion of the losses they had sustained since the start of 2016.

Along with prices for just about every other risky and cyclically sensitive asset, oil prices plunged in late summer, and then quickly surged.

Also, stocks are volatile and generally the riskiest assets, with the possible exception of credit default swaps, high - yield «junk» bonds, and other similar assets.

Fortunately, high correlations with oil since earlier this year have meant strong performance for most of these riskier assets.

This front - end alternative is now creating a crowding - out effect for more risky assets by providing a tangible investment alternative with much less embedded risk.

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.

Here and now, it's very true that the S&P 500 is a risky asset, but it's madness to imagine that adding more of it to a portfolio will increase expected return, except for investors with very long horizons.

With nearly 12 percent of the city's pension funds invested in riskier «alternative assets,» management fees ballooned to $ 472.5 million, Liu revealed last month.

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.

This front - end alternative is now creating a crowding - out effect for more risky assets by providing a tangible investment alternative with much less embedded risk.

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.

Fortunately, high correlations with oil since earlier this year have meant strong performance for most of these riskier assets.

When risky assets get very correlated with each other, and the only alternative game to play is buying high quality bonds, it is an unstable situation that portends lower risky asset prices.

Financing long - term assets with short - term debt is even cheaper and riskier than financing with debt that matches the term of the asset.

In a bust, all risky assets become highly correlated with each other, invalidating ideas of risk control through diversification.

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.

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.

Young investors or investors with long time frames should hold a higher proportion of stocks or risky assets than older investors or investors with short time frames.

In a panic, all risky assets become highly positively correlated with each other.

Yet in 2008, commodities plunged along with all other risky assets.

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.»

This can be advantageous to you if you don't want to put your assets as stake but can be risky for the lender as he doesn't have anything to secure the loan with.

With all of the uncertainty, investors of all activity levels either foolishly or fearlessly venture into the price melee to bargain hunt or to unload risky assets.