b Concentrating more than, say, 10 % of your portfolio in any single
stock increases risk more than it does potential return.
The rich investment in growth
stocks increases risk associated with these types of funds.
Trading
stocks increases the risk to a portfolio versus buy - and - hold.
Not exact matches
Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced
increases in the build rates of certain aircraft; 6) the effect on aircraft demand and build rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the
risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates
increase substantially; 27) the effectiveness of any interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the
risks of doing business internationally, including fluctuations in foreign current exchange rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated
stock repurchase plan, among other things.
Actual results, including with respect to our targets and prospects, could differ materially due to a number of factors, including the
risk that we may not obtain sufficient orders to achieve our targeted revenues; price competition in key markets; the
risk that we or our channel partners are not able to develop and expand customer bases and accurately anticipate demand from end customers, which can result in
increased inventory and reduced orders as we experience wide fluctuations in supply and demand; the
risk that our commercial Lighting Products results will continue to suffer if new issues arise regarding issues related to product quality for this business; the
risk that we may experience production difficulties that preclude us from shipping sufficient quantities to meet customer orders or that result in higher production costs and lower margins; our ability to lower costs; the
risk that our results will suffer if we are unable to balance fluctuations in customer demand and capacity, including bringing on additional capacity on a timely basis to meet customer demand; the
risk that longer manufacturing lead times may cause customers to fulfill their orders with a competitor's products instead; the
risk that the economic and political uncertainty caused by the proposed tariffs by the United States on Chinese goods, and any corresponding Chinese tariffs in response, may negatively impact demand for our products; product mix;
risks associated with the ramp - up of production of our new products, and our entry into new business channels different from those in which we have historically operated; the
risk that customers do not maintain their favorable perception of our brand and products, resulting in lower demand for our products; the
risk that our products fail to perform or fail to meet customer requirements or expectations, resulting in significant additional costs, including costs associated with warranty returns or the potential recall of our products; ongoing uncertainty in global economic conditions, infrastructure development or customer demand that could negatively affect product demand, collectability of receivables and other related matters as consumers and businesses may defer purchases or payments, or default on payments;
risks resulting from the concentration of our business among few customers, including the
risk that customers may reduce or cancel orders or fail to honor purchase commitments; the
risk that we are not able to enter into acceptable contractual arrangements with the significant customers of the acquired Infineon RF Power business or otherwise not fully realize anticipated benefits of the transaction; the
risk that retail customers may alter promotional pricing,
increase promotion of a competitor's products over our products or reduce their inventory levels, all of which could negatively affect product demand; the
risk that our investments may experience periods of significant
stock price volatility causing us to recognize fair value losses on our investment; the
risk posed by managing an increasingly complex supply chain that has the ability to supply a sufficient quantity of raw materials, subsystems and finished products with the required specifications and quality; the
risk we may be required to record a significant charge to earnings if our goodwill or amortizable assets become impaired;
risks relating to confidential information theft or misuse, including through cyber-attacks or cyber intrusion; our ability to complete development and commercialization of products under development, such as our pipeline of Wolfspeed products, improved LED chips, LED components, and LED lighting products
risks related to our multi-year warranty periods for LED lighting products;
risks associated with acquisitions, divestitures, joint ventures or investments generally; the rapid development of new technology and competing products that may impair demand or render our products obsolete; the potential lack of customer acceptance for our products;
risks associated with ongoing litigation; and other factors discussed in our filings with the Securities and Exchange Commission (SEC), including our report on Form 10 - K for the fiscal year ended June 25, 2017, and subsequent reports filed with the SEC.
These
risks and uncertainties include: Gilead's ability to achieve its anticipated full year 2018 financial results; Gilead's ability to sustain growth in revenues for its antiviral and other programs; the
risk that private and public payers may be reluctant to provide, or continue to provide, coverage or reimbursement for new products, including Vosevi, Yescarta, Epclusa, Harvoni, Genvoya, Odefsey, Descovy, Biktarvy and Vemlidy ®; austerity measures in European countries that may
increase the amount of discount required on Gilead's products; an
increase in discounts, chargebacks and rebates due to ongoing contracts and future negotiations with commercial and government payers; a larger than anticipated shift in payer mix to more highly discounted payer segments and geographic regions and decreases in treatment duration; availability of funding for state AIDS Drug Assistance Programs (ADAPs); continued fluctuations in ADAP purchases driven by federal and state grant cycles which may not mirror patient demand and may cause fluctuations in Gilead's earnings; market share and price erosion caused by the introduction of generic versions of Viread and Truvada, an uncertain global macroeconomic environment; and potential amendments to the Affordable Care Act or other government action that could have the effect of lowering prices or reducing the number of insured patients; the possibility of unfavorable results from clinical trials involving investigational compounds; Gilead's ability to initiate clinical trials in its currently anticipated timeframes; the levels of inventory held by wholesalers and retailers which may cause fluctuations in Gilead's earnings; Kite's ability to develop and commercialize cell therapies utilizing the zinc finger nuclease technology platform and realize the benefits of the Sangamo partnership; Gilead's ability to submit new drug applications for new product candidates in the timelines currently anticipated; Gilead's ability to receive regulatory approvals in a timely manner or at all, for new and current products, including Biktarvy; Gilead's ability to successfully commercialize its products, including Biktarvy; the
risk that physicians and patients may not see advantages of these products over other therapies and may therefore be reluctant to prescribe the products; Gilead's ability to successfully develop its hematology / oncology and inflammation / respiratory programs; safety and efficacy data from clinical studies may not warrant further development of Gilead's product candidates, including GS - 9620 and Yescarta in combination with Pfizer's utomilumab; Gilead's ability to pay dividends or complete its share repurchase program due to changes in its
stock price, corporate or other market conditions; fluctuations in the foreign exchange rate of the U.S. dollar that may cause an unfavorable foreign currency exchange impact on Gilead's future revenues and pre-tax earnings; and other
risks identified from time to time in Gilead's reports filed with the U.S. Securities and Exchange Commission (the SEC).
36:38 — Andy discusses Passive Plus feature
Risk Parity, which uses leverage to increase volatility in a stock - and - bond - balanced portfolio to increase returns without increasing r
Risk Parity, which uses leverage to
increase volatility in a
stock - and - bond - balanced portfolio to
increase returns without
increasing riskrisk.
The Fund's investments in smaller - company
stocks carry an
increased risk of price fluctuation, especially over the short term.
If you can't stomach the
risk of the higher potential losses in
stocks, lower the amount you have in
stocks and
increase your allocation to bonds.
The losses in major Asian
stock markets on Wednesday morning tracked losses on Wall Street overnight, and with
increasing risks seen in tech shares, weak copper prices, and high US Treasury yields.
- All Investing Involves
Risk - 4 Dividend
Stocks With Room To
Increase Their Payout
She literally discussed and answered questions about all of the investing topics I have recently been thinking about — including weighing the pros and cons of placing all of your bond investments into tax - deferred accounts, why Vanguard decided to recently
increase their recommended
stock allocation to include 40 % international
stocks, and how more investors using REITs (real estate investment trust funds) to balanced their portfolios and mitigate
risk.
Given the flaws in Netflix's business and the market's
increasing awareness of them, holders of NFLX are taking imprudent
risk with the
stock at anywhere close to its current valuation.
The resulting
increased weight in
stocks meant the portfolio had more potential
risk at the end of 2016.
Keeping an eye on the performance of small - cap
stocks during and after market corrections is crucial because institutional money flow into the small - cap arena indicates an
increasing demand and appetite for
risk among «smart money» investors.
These
stocks limit the
risk and
increase the potential as a diversified investment in...
That's why experts typically advise folks who are closer to retirement to decrease their exposure to equity
risk by reducing the percentage of their investments in
stocks and
increasing the percentage in bonds.
If you're a swing trader who has been exclusively trading only ETFs or only trading individual
stocks, you have been missing out on a stellar opportunity to
increase your trading profits AND decrease your
risk.
I want to reiterate that the primary cause of every market crash has been an
increase in the
risk premium demanded on
stocks.
While this reduces the break - even point it also
increases risk if the
stock price continues to drop; this is not to mention that they are coughing up more cash to purchase more
stock.
You have to understand that you are
increasing your
risk for large losses by changing your asset allocation more heavily towards
stocks.
Important factors that may affect the Company's business and operations and that may cause actual results to differ materially from those in the forward - looking statements include, but are not limited to, operating in a highly competitive industry; changes in the retail landscape or the loss of key retail customers; the Company's ability to maintain, extend and expand its reputation and brand image; the impacts of the Company's international operations; the Company's ability to leverage its brand value; the Company's ability to predict, identify and interpret changes in consumer preferences and demand; the Company's ability to drive revenue growth in its key product categories,
increase its market share, or add products; an impairment of the carrying value of goodwill or other indefinite - lived intangible assets; volatility in commodity, energy and other input costs; changes in the Company's management team or other key personnel; the Company's ability to realize the anticipated benefits from its cost savings initiatives; changes in relationships with significant customers and suppliers; the execution of the Company's international expansion strategy; tax law changes or interpretations; legal claims or other regulatory enforcement actions; product recalls or product liability claims; unanticipated business disruptions; the Company's ability to complete or realize the benefits from potential and completed acquisitions, alliances, divestitures or joint ventures; economic and political conditions in the United States and in various other nations in which we operate; the volatility of capital markets;
increased pension, labor and people - related expenses; volatility in the market value of all or a portion of the derivatives we use; exchange rate fluctuations;
risks associated with information technology and systems, including service interruptions, misappropriation of data or breaches of security; the Company's ability to protect intellectual property rights; impacts of natural events in the locations in which we or the Company's customers, suppliers or regulators operate; the Company's indebtedness and ability to pay such indebtedness; the Company's ownership structure; the impact of future sales of its common
stock in the public markets; the Company's ability to continue to pay a regular dividend; changes in laws and regulations; restatements of the Company's consolidated financial statements; and other factors.
Considering the market improvement, continued reduction in our discount rates due to lower
risks and
increased probability of a liquidity event, the probability - weighted expected return method resulted in a common
stock value of $ 5.27 as of March 31, 2010.
Effective January 1, 2011, upon the recommendation of the GNC, the Board
increased to $ 25,000 the annual fee paid to the chair of each standing Board committee other than the AEC, which remained at $ 30,000; set at $ 25,000 the annual fee paid to the chairs of the CRC and
Risk Committee, which were formed effective January 1, 2011; eliminated the annual
stock option grant; and
increased the value of the annual
stock award to $ 140,000.
«This time around, however, the more modest
increase in the
stock market's valuation has been largely driven by a secular decline in the available return from «
risk - free» assets.
That would
increase the
risk of a sudden and dramatic fall in
stocks, quite possibly setting off a negative global chain reaction.
We believe that investors who are trying to reduce
risk by selling
stocks and buying bonds are probably
increasing their
risk of losing money.
That phrase implies that Buffett knows his own
risk tolerance, and that he is scaling into
stocks gradually as their prices decline and their expected long - term returns
increase.
Fear
increases the sense of
risk and some react by shunning
stocks.»
Options can help you protect against
risk, generate income,
increase profits, lower your breakeven point, reverse your strategy without selling your
stock, and even potentially let you set a purchase price for a
stock below its current market price.
If all
stocks are always priced appropriately — meaning there is no way to
increase return without
increasing risk — then diversification is a free good.
Most bonds (not junk bonds) represent a less risky investment than most
stocks, which means that
stocks have to offer a higher return as a premium for
increased risk.
Our research shows that constructing a portfolio holding tax - efficient broad - market
stock investments in taxable accounts and taxable bonds in tax - advantaged accounts can minimize taxes and add up to 0.75 % of additional net return in the first year, without
increasing risk.
SRI
STOCKS Given the increasing risks to global sustainability, we believe there is a corresponding increasing need for increasing exposure to SRI stocks in one's long term investing port
STOCKS Given the
increasing risks to global sustainability, we believe there is a corresponding
increasing need for
increasing exposure to SRI
stocks in one's long term investing port
stocks in one's long term investing portfolio.
Data for the last 60 years demonstrates that adding small
stocks, foreign
stocks, real estate and emerging - market
stocks to a portfolio generally reduces the level of volatility or
risk, and at the same time
increases the portfolio's return.
So while rising interest rates are a
risk for bondholders, they can also
increase risks for
stock investors.
At current levels of rates and
risk premiums, a mere 1 %
increase in the discount rate (from 4.7 % to 5.7 %) would shave nearly 4 P / E points off the
stock market's fair value on a trailing earnings basis.
As interest rates
increase, there is
increased risk to the
stock market for two big reasons.
This family has been the biggest beneficiary of investors» lust for a
stock that is exposed to all sorts of
risks associated with agriculture including weather, food prices and
increasing competition.
«This policy
risks depleting the
stock of social housing further and therefore
increasing the housing benefit bill in the longer term,» the report warned.
That is one reason why even experienced stockbrokers often sell
stocks while they are still
increasing in value, leaving money on the table rather than
risking a loss.
So, if you didn't
stock up on emergency contraception ahead of time (which, to be fair, many of us probably don't), waiting for a product to ship could
increase your
risk of unplanned pregnancy.
Lowering the amount of
risk in your portfolio by
increasing the safer investments (ie more bonds, less
stocks) will help you sleep better at night if that is a problem.
In fact, evidence shows that owning just a few dozen
stocks provides better returns with no
increase in
risk.
In the absence of access to leverage, investors may overpay for high volatility
stocks in an attempt to
increase risk in their portfolios, potentially leading lower volatility
stocks to become more attractively valued and outperform in the future.
That means that as your
stock funds
increase in value relative to your bond funds, a greater portion of your investment portfolio will be held in these riskier, more aggressive assets — something that could throw off your allocation and
risk tolerance.
And since people tend to become less tolerant of
risk as they age, you may also want to pare back your
stock exposure gradually throughout retirement (although there's also an argument for a «reverse guide path,» or starting with a relatively low
stock exposure and
increasing it later on).
It also stated that it would stay away from cyclical
stocks or mid cap
stocks to reduce the
risk of the portfolio and
increase chances of positive returns over the long term.
Most bonds (not junk bonds) represent a less risky investment than most
stocks, which means that
stocks have to offer a higher return as a premium for
increased risk.
For example, if you have a very high tolerance for
risk — perhaps you have a spouse with a full pension so you're less concerned about
stock market volatility — you might
increase the level of equity you hold in your retirement savings.