Sentences with phrase «term an asset declines»

Thus, if in the short term an asset declines in price, another rises, thereby mitigating portfolio risk.

Not exact matches

Generally, among asset classes, stocks are more volatile than bonds or short - term instruments and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.

As James Hamilton has observed, «it seems not coincidental that, when you look at the total of all the assets the Fed is holding, the expansion of MBS purchases exactly offsets the declines from phasing out the short - term lending facilities.

These assets always tend to perform well when stocks are declining, while they offer a genuinely secure source of wealth that are ideal for long - term investment plans.

We believe a long term asset management approach, allied to increased levels of funding, is required to bring our road network up to an acceptable standard and arrest the decline caused by years of under investment.»

At Global Atlantic, we create life insurance and annuity products that can help you protect your family against financial hardship, help shield your retirement assets from market declines, provide for long - term care, and more.

It's not a necessary cost for long - term investors either since stocks are tied to ownership of real assets and can increase to match inflation or declines in their native currency given time.

Equity is the most suitable asset class for your long - term goals but it is prone to sharp declines.

Cash feels safe in the short - term, but in the long - term it is the riskiest asset because it is guaranteed to decline in value relative to inflation.

They also maintain a short position against the broad stock market to hedge against a market decline and invest the majority of their assets in cash alternatives and high quality, short - term fixed income securities.

Other factors that raise the probability are lack of diversification of assets, a short term for repayment on the leverage, a run on the bank, or restrictive rules on what happens if your assets decline too much in value.

«We want to make sure we buy long lead - life, low decline - rate assets at attractive valuations, with good balance sheets, in order to survive the short - term and very intense volatility we're seeing in the price of oil,» McKinley said.

It is also important to slowly move your portfolio into less risky assets as you grow older to protect the growth of the portfolio from potential short - term market declines.

Yes, I built up a pot of assets, but what will that buy in terms of continuing income, and will that do well against declining purchasing power?»

Those periodic special dividends are feasible because of the firm's immaculate balance sheet, which has almost no debt, relatively high cash levels (relative to the size of the company and its acquisitions), and a high current ratio (i.e. the company's short - term assets cover its short - term liabilities by more than three-fold, thus protecting it from unexpected negative financial strains, such as during recessions when demand from restaurants can lead to declining sales, earnings, and cash flow).

For example, perverse incentives to push viable businesses into solvency may be at work due to increased margins and fees, while lenders engineer «distress» in businesses by restricting credit or revaluing assets and then accelerate the decline by imposing dramatic changes to lending terms.

«While there wasn't a lot of activity in any sector in terms of transaction volume, when you compare that to declines in other asset classes, like office, self - storage was impacted the least.»

If market entry is decided, a specific strategy needs to be outlined in terms of what assets will be acquired, at what price, occupancy status, lease roll structure, etc., in order to counter the risk of declining market rents and values.

Depreciation is also an accounting term which shows the declining monetary value of an asset and is used as an expense to reduce taxable income.

Underwriting Approves (or declines) funding to potential home buyers, based upon factors such as credit, employment, assets, etc., and matches approved risks with appropriate rates, terms and loan amounts.