An active portfolio would almost certainly be less diversified than the ETF, which means that
the same asset flows would have been directed to a smaller number of stocks where they would presumably have been even more disruptive.
An active portfolio would almost certainly be less diversified than the ETF, which means that
the same asset flows would have been directed to a smaller number of stocks where they would presumably have been even more disruptive.
Not exact matches
3) Beijing and other Chinese entities could buy fewer U.S.
assets and replace them with an equivalently larger amount of
assets from other developed countries, so that net capital
flows from China to the United States would be reduced, and net capital
flows from China to other developed countries would increase by the
same amount.
A Chinese gambit to assume that Chinese robots will be allowed to replace other robots, or that companies taxed on dollar
assets held abroad, or financial
flows, or what have you, is a marginal movement of thought to merely another corner of the
same old old box.
Scenario 2 — Reinvest To 2015 Levels: If, instead of buying back stock, GE could quickly redeploy the capital from the sale of the financial
assets and earn the
same ROIC on that capital, it would generate enough cash
flow to justify the current stock price.
Whether we look at housing, mortgage backed securities, or stocks, the underlying reason for a decline in
asset prices is the
same - the prices are too elevated, relative to the stream of cash
flows they will produce, to achieve an acceptable rate of return.
Given the ecology of our rivers, this will not mean the
same watering patterns each year, but rather that large
assets may be watered every few years, building on the prevailing climatic and
flow conditions in different parts of the Basin.
Note: at the
same time, that don't need to make money, and have financial flexibility, don't care to invest, because
asset prices are too high compared to the cash
flows that they are likely to throw off.
The
flow of money into ETFs doesn't represent some mad rush to a specific
asset class or sector; it's simply a change in formats to access the
same thing.
Even if the
same thing happened in a couple of years, that would mean we now have more equity in the property that we can tap into, a couple of years worth of cash
flow, and an income producing
asset.
At the
same time, your loan is at work in your newly purchased
asset creating cash
flow.
The cash in your account is still earning guaranteed interest and dividends, while at the
same time, earning a return in the cash
flow asset you used the loan to purchase.
In the
same way, a successful retirement plan outlines effective strategies in various areas such as saving, cash
flow, and
asset allocation.
Some experts worry that the
flow to index funds, which hold $ 1.2 trillion of
assets, has reached critical mass and threatens to destabilize the market because so many people are investing in the
same manner.
To be proper when comparing whole investment portfolios, the mix of benchmark indices needs to called something appropriate, have the exact
asset classes and weightings, the fees and rebalancings have to be the
same, the time frame has to be the
same, all security trades need to be the
same, and cash
flows have to all be the
same.
That is no prosperity, though, because the
assets throw off the
same cash
flows.
That way your money in your policy continues to grow, while at the
same time you can grow your money you borrowed through other cash
flowing assets.
At the
same time, Dodd - Frank attempts to ensure a level of cash
flow and
asset quality that will support securitization.
That is one dynamic to add to my consideration, but the downfall to option # 1 is some lost leverage on long term
asset gains (not cash
flow since both options cash
flow roughly the
same).