Sentences with phrase «than bonds when»

A diverse mix of investments that fits your risk level and timeline: generally, heavier in stocks than bonds when you have a long - term horizon.

Not exact matches

When Alexandre Pestov, a strategic consultant and research associate at York University's Schulich School of Business, compared buying a two - bedroom Toronto condominium to renting it over the past 25 years, he found that the renter ended up $ 600,000 richer than the owner if he invested the spare cash in low - risk bonds.

Dalio explained that a so - called capital war, when a country uses its asset holdings such as bonds to inflict pain on its adversary, could be even worse than a trade war.

That's significantly higher than the 4.63 % interest it got when it issued bonds to fund its own buyout a few years ago.

But the simple fact is she just doesn't know, because she doesn't know when the effect of a higher coupon has a more powerful effect on a bond's price than does a shorter term.

When the Standard & Poor's 500 - stock index lost 10 percent from late January to early February, the Bloomberg Barclays Aggregate U.S. Bond index fell more than 1 percent.

Instead of rallying when stocks were falling — typically the case for the last three decades — bonds merely managed to lose less than stocks.

There have been comparatively few leaks compared to last year's awards season (so far), when a single group called Hive - CM8 leaked more than a dozen of 2016's top movies, including James Bond movie «Spectre,» «Legend,» «Steve Jobs,» «Creed,» and Quentin Tarantino's «The Hateful Eight» — before it even came out in the cinemas.

On Monday, investors rushed into Treasuries as the S&P 500 and Dow Jones Industrial Average nosedived more than 4 percent - reversing a move on Friday when a spike in bond yields, which move inversely to prices, triggered an equity rout.

According to Morningstar, over the past 30 years, the Vanguard Total Bond fund has experienced six years when the principal loss in the portfolio was more than 2 percent.

But more than anyone, Mr. Schäuble has come to embody the consensus that has helped shape European economic policy for years: that the path to sustained economic recovery for financially troubled countries is to slash spending, raise taxes when necessary and win back the trust of bond markets and other investors by displaying commitment to fiscal prudence — even if that process imposes deep economic pain as it plays out.

Market discount arises when a bond is purchased on the secondary market for a price that is less than its stated redemption price.

While it's still not known when interest rates will go up and by how much, what we do know is that the bond market is at greater risk to rising interest rates than at any time in recent history.

Active bond managers try to hold shorter maturities than their benchmark when rates are rising, and longer maturities when rates are falling.

A well - functioning local - currency bond market allows a government much more economic policy flexibility than can be experienced when tied to foreign currency borrowing.

When the stock market dividend yield yields more than a 10 - year US treasury bond yield, it's generally a good sign to invest in equities.

In fact, from the middle of 1983 through October of 1987, there were just two months when more money flowed into stock funds than into bond funds — April 1987 and August 1987.

Although cash tends to have a lower expected return than bonds, we have seen that cash can hold its own against bonds 30 percent of the time or more when bond returns are positive.

Historically, other than in times of extreme market turmoil, when the stock market sells off with force, the funds flow into the Treasury bond market.

The truth is that you can actually make more than a million US dollars if you are able to invest in the right stocks and bonds at the right time when the market forces are all positive.

The economics of the Voya deal seem even better now than on Dec. 21 when the transaction was announced given the rise in bond yields, Belardi told Wall Street analysts.

Bond funds fluctuate and shares, when redeemed, may be worth more or less than their original cost.

There are a number of other risks to consider when investing in bonds that are potentially more harmful than rising rates.

«Market discount» arises when a bond is purchased on the secondary market for a price that is less than its stated redemption price by more than a statutory amount.

It was problematic because many of those bonds were purchased a time when interest rates were much higher and enjoyed far fatter bond coupons than anything then available on the market.

On 15 October, the yield on 10 - year US Treasury bonds fell almost 37 basis points (Graph 2, left - hand panel), more than the drop on 15 September 2008 when Lehman Brothers filed for bankruptcy.

When it comes to investing, few topics are more confusing to the majority of investors and the general populace than the difference between stocks and bonds.

When investors buy stocks, they get a higher yield than in banks or Treasury bonds, and they essentially get the company for free!

''... though the value equation has usually shown equities to be cheaper than bonds, that result is not inevitable: When bonds are calculated to be the more attractive investment, they should be bought.»

First, TIPS funds are made up largely of longer - term bonds, and long bonds fall more than short bonds do, when rates go up.

In 2008, for example, when United States stocks fell 37 percent, high - quality core bonds rallied more than 5 percent.

Short duration bond strategies tend to have lower yields than long duration bond strategies, but when interest rates rise, short duration strategies will experience a smaller price drop.

The answer is that Fed policy is the primary factor driving the returns of short - term bonds, meaning that they tend to hold up much better than long - term debt when the Fed is expected to keep rates low as was the case in 2013.

When investors begin to focus on the potential for Fed rate hikes, short - term bonds will almost certainly begin to experience lower returns and — depending on the type of fund — greater volatility than they have in years past.

When shopping for GE bonds, retail investors will find it quite difficult to find anything other than General Electric Capital Corp. debt.

Btw the 10 year horizon is relevant to me as it is when I can take my 25 % lump sum from SIPP, so preferable taking it from bonds that have just been redeemed rather than selling down equities that may be in a bear market at the time.

The recent widening of this spread is, of course, much smaller than was seen in 1994 in the previous episode of globally rising bond yields, when the yield on 10 - year bonds in Australia moved from 1 percentage point to about 3 percentage points above the comparable US yield.

A survey of nearly 2,000 economists, security analysts and corporate executives conducted in March and April found that in 30 out of 41 countries — including the U.S. — these experts are calling for stocks to outperform bonds by a wider margin than they did when last surveyed in 2015.

When equities yield less than bonds, they still usually have the higher expected returns.

In my opinion, higher inflation is a much bigger risk than rising interest rates when it comes to bond performance.

Although decades of history have conclusively proved it is more profitable to be an owner of corporate America (viz., stocks), rather than a lender to it (viz., bonds), there are times when equities are unattractive compared to other asset classes (think late - 1999 when stock prices had risen so high the earnings yields were almost non-existent) or they do not fit with the particular goals or needs of the portfolio owner.

Bond prices fall when rates rise, but short - term munis are less sensitive to rate fluctuations than longer - term bonds.

Even during the 1940's when bond yields were low, stocks were much better values than today, boosting long - term expected returns to about 6 percent.

Of course since they also get that additional $ 100 return on their purchase when then bond term ends, so their total return is even better than the 5.6 %.

It doesn't help that 10 - year bond yields are still lower than the prospective operating earnings yield on the S&P 500 (the «Fed Model»), not only because the model is built on an omitted variables bias (see the August 22 2005 comment), but also because the model statistically underperforms a simpler rule that says «get in when stock yields are high and interest rates are falling, and get out when the reverse is true.»

In other words, the individual stocks, bonds, and funds you choose or when you buy or sell is less important to your ultimate return than the percent allocated to various asset classes.

Bull markets rarely end when the earnings yield on stocks — now around 6 % — is higher than benchmark bond yields.

When a bond is selling at a premium, its current price is higher than its face value.

Cons: The primary negative associated with investment grade floaters is that when issued they generally offer current yields that are significantly lower than a typical fixed rate bond of the same maturity offered by the same issuer.

But when you are dealing with bond funds, which are a lot less volatile than stock funds, what is the risk?