Sentences with phrase «stock risk because»

The idea is that investors are not compensated for single stock risk because stock markets are efficient.

Not exact matches

Because bond prices tend to move in the opposite direction of stock prices, you can also buy bond funds to further balance the risk of those stock funds.

It works as advertised, but the prices are marked up, and customers run the risk of not being able to get what they want because the store is out of stock.

The product is also advertised as having no risk, because it will not decrease in value even if the stock market loses money.

And cracks have begun to appear north of the 49th parallel; GMP Securities analyst Michael Urlocker downgraded Research In Motion on April 21, saying it «risked becoming a value trap — a stock that looks cheap but isn't because its prospects are diminishing.»

Because this type of fund ebbs and flows with the market, it stays relatively constant and avoids the risk that comes with picking individual stocks.

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Value investors like Buffett will tell you that such stocks are a better bet over the long term because they provide better returns with less risk.

While the potential for an explosive move upwards in those stocks remains a clear possibility because of the political and economic risks in the global economy today, we can not predict — obviously — that such an event is likely to occur «now» as opposed to next week or next year.

Because this type of fund is highly diversified, it stays relatively constant and avoids the risk that comes with picking individual stocks.

Even if you really mean to say that the $ 29,163 is assuming a 5 % withdrawal rate over 20 years (assuming your assets will stay steady gaining 5 % a year) then there would still be no way to add the additional 2 % into the mix because you can't have money both in the stock market and in the risk free rate at the same time (at least, not the same money)

Now I check my rollover IRA on a daily basis because I've got much higher risk with single stock investments.

By identifying low - risk entry points in leading individual stocks, we are able to use high volatility to our advantage because we look for stocks engaged in a volatility contraction, which are due for an inevitable range expansion within a few days.

Avoiding saving money entirely because of the potential threat of a stock market crash could put you at risk for having zero retirement savings when you reach retirement age.

«Some younger investors... are extremely risk averse because they have seen their parents lose their jobs, lose equity in their homes and experience stock market declines after 9/11, Enron and the global financial crisis,» the certified financial planner said.

It makes sense to invest in stock index or mutual funds because they give you a broadly diversified portfolio of many stocks which reduces your risk of large losses from owning a single stock.

4In fact, one book, Dow 36,000, which was published in 1999 shortly before the stock market peaked, argued that «fair value» for the Dow Jones Industrial Average should be 36,000 because the appropriate risk premium for the equity market versus Treasury bonds should be zero.

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.

Stocks are a great example of this type of investment because they come with a great deal of risk.

He doesn't understand the following three iron - clad rules of stock selection and risk management (because he has no risk):

When an ETF or stock with relative strength breaks out of a base, the first subsequent pullback to the 50 - day MA typically presents a low - risk buying opportunity because it is this level where institutions often step back in to buy.

On the one hand we need to accumulate as much as possible because of our age and lost time to make up for, but for the same reasons we can't afford the losses that go along with those higher risk / potentially higher gain stocks.

Because no one can forecast the future of the stock and bond markets, many experts recommend that investors have a balanced portfolio, for the simple reason that diversification lowers risk.

So, saying «cash» is a terrible investment because of inflation, completely ignores the other risks involved in holding stocks and bonds.

Again, when risk - aversion kicks in during the completion of a market cycle, central bank liquidity does not reliably support stocks, because safe liquidity is seen as a desirable asset rather than an inferior one.

Growth stocks will have sold off sharply in an economic recession because investors stampede for the exits on anything with a little risk.

Of course, the «best» stock for anyone really depends on the trader because different traders have different risk profiles, needs, and preferences.

Because these have short term trades, you can turn over more cash — and more profits — but because they allow you to start with small amounts of money per trade, you are not taking on as much risk as you would with a huge day trade in the stock Because these have short term trades, you can turn over more cash — and more profits — but because they allow you to start with small amounts of money per trade, you are not taking on as much risk as you would with a huge day trade in the stock because they allow you to start with small amounts of money per trade, you are not taking on as much risk as you would with a huge day trade in the stock market.

Hurco's exec comp plan lowers the risk of investing in the company's stock because we know executives are held accountable for creating real profits.

Dividend stocks are enticing to investors during periods of volatility because in such a market they tend to perform well relative to more growth - oriented or higher - risk equities.

C gets our «very dangerous» rating because we believe the downside risk dwarfs the upside potential of the stock.

Because risk - seeking investors tend to be indiscriminate about it, we find that the best measure of risk - seeking is the uniformity of market internals across a broad range of individual stocks, industries, sectors, and security types, including debt securities of varying creditworthiness.

I think those are bogus, because inflation and investment returns are weakly related when it comes to risk assets like stocks and any other investment with business risk, even in the long run.

Of course because long timelines tend to lower risk, many people start out with very aggressive portfolios — sometimes 100 % stocks.

In strongly uptrending markets, for example, the model trading account of The Wagner Daily swing trading newsletter will sometimes underperform the gains of the main stock market indexes because we strictly control risk at all times.

From the perspective of someone interested in making investments with 20 + year holding periods in mind, you need to be careful of owning banks because of the debt to equity levels involved in the investment, you need to be wary of technology companies because they must constantly be innovating to remain profitable and relevant (unlike, say, Hershey, which could stick with its business model of selling chocolate bars for the next century), and retail stocks which are always subject to the risk of a new low - cost carrier arriving on the block.

Because investments from gold to bonds and stock are priced to include expected inflation rates, it is the unexpected changes that produce this risk.

Because of the risk related to bringing these plants to completion, the stock market has penalized the company.

Recall 2000 - 2002 (chart) and 2007 - 2009 (chart): no amount of Fed easing is supportive of stocks or the economy once investors shift to risk - aversion (because in that environment, low interest liquidity is a desirable asset rather than an inferior one).

The risk is because many workers don't contribute to their 401 (k) plans and those that do don't understand the risk inherent in the stock market.

Because these venture capital firms want higher return rates than other investments such as the stock market provide, they typically invest in promising startup or young businesses that have a high potential for growth but are also high risk.

The reason it's called a premium is because you get paid, or at least historically, have gotten paid to take risk in the stock market.

It would be dumb of me to say «You should buy x stock, you should buy y stock» because (1) there are a lot of ways to create inflation - adjusted wealth over the long haul in a country with an economy worth over $ 13 trillion, and (2) you have to do it in a way that is within your circle of competence and fits your style and risk profile for investing.

In a stable market, ETFs which hold 15 to 20 stocks are a better option than trading stocks because they can reduce risk and add diversification, says K.C. Ma, director of the Roland George investments program at Stetson University in DeLand, Florida.

Single stock risk exist when an investor can lose a significant amount of money because the single stock they own, has a big decline in price.

«ETFs are great for individual investors because it eliminates single stock risk,» Place says.

If this bull market has a long future ahead of it — which I strongly doubt, but which we do have to allow — there will likely be several appropriate points to establish a speculative position at controlled risk (speculative, because my view is that the long - term investment merit of stocks is quite weak here).

In an interview with Bloomberg, El - Erian said he isn't avoiding stocks because of the perceived risks.

«Analysts said they continue to view Whole Foods as an «innovation leader in food retail,» but see risk in its stock valuation because it's in the early stages of a multiyear transition,» MarketWatch reports.

It's because I'm high - risk, in a way that has nothing to do with the stock market, live electrical cables, or fantastically 80's films starting Tom Cruise (unfortunately).