Many people are under the impression that bonds are usually safer investments
than stocks because you don't lose your principal.
Bonds are considered less risky
than stocks because bond prices have historically been more stable and because bond issuers promise to repay the debt to the bondholders at maturity.
Bonds typically have much higher Sharpe Ratios
than stocks because of their much lower volatility, so this isn't really a surprise.
So typically, bonds have less risks
than stocks because you get this guaranteed principal repayment at the end of the bond.
Precious metals tend to be much better investments during a depression
than stocks because you can never determine which ones will realize gains and which ones will experience devastating losses.
Only with bonds it's even harder to create a diversified portfolio using individual bonds on your own unless you (a) have a large amount of capital (typically bonds are sold in lots of $ 10,000 or $ 100,000) and (b) know how to trade bonds on the open market (transaction costs can be larger for bonds
than stocks because of the spreads and lack of liquidity).
For me, I like real estate more
than stocks because it's tangible, and many other reasons I've already mentioned.
I didn't even notice that the fenders are fiberglass and wider
than stock because of how seamlessly this NSX is styled.
This is less risky
than a stock because you know how much you will be paid and when you will be paid.
Not exact matches
And that, importantly, would make it a worse investment on average
than the
stock market
because PE is illiquid.
Allan Small, a senior investment adviser with DWM Securities, likewise recommends growth - with - income
stocks because they can beat inflation with a one - two punch, rather
than just with capital gains or dividends.
SunPower's
stock price has fallen by more
than half from the deal price, largely
because of intensifying competition in the solar sector, and the battery business too is growing more cutthroat.
The practice means that each new year's grants tend to end up being potentially more valuable
than the previous year's, just
because stock prices tend to drift higher over time.
Battered by nearly a year of off - and - on declines from record highs
because of fears of a slowdown in iPhone sales, Apple «s
stock now is valued closer to IBM, which has disappointed Wall Street for the past four years with declining revenue,
than to Silicon Valley technology pioneers Alphabet and Tesla Motors.
But
because their assets tend to perform better during better economic times, these
stocks often see higher returns
than other parts of the market during upswings, says Stammers.
Preferred
stock is better
than common
stock,
because holders of preferred
stock receive preferential treatment in the event of a liquidation of the business.
As for Schlumberger, investors appear jittery about the
stock, in part
because the world's supplier of oilfield equipment has less exposure to the lucrative shale market ---- the biggest near - term driver for sales ----
than competitors.
Because these big lists of
stocks are bought and sold simultaneously, they cause the action of all of the individuals
stocks to become much more correlated
than it had been in the past.»
Simply put, a deal that offers participating preferred
stock creates a lower implied valuation for your business
than a plain vanilla term sheet with no participation feature,
because the investors will end up with a disporportionately higher piece of the value created.
Rather
than using the new data to push investors to buy
stock, Wieser recommends caution
because he believes that the we're approaching the saturation point when increases in digital ad budgets won't lead to increased sales.
If not, you need to wait for the JOBS Act to kick in and then use equity crowdfunding, where you will be able to sell
stock in your business,
because less
than 2 percent of Kickstarter crowdfunding campaigns successfully raise $ 100,000 or more.
According to the Wall Street Journal, people who had shorted SolarCity
stock will have to scramble to rebuy shares that have gone up
because of the potentially less -
than - arm's - length acquisition offer.
Because Dell's 16 percent stake isn't included in the special vote, the leveraged buyout must be backed by slightly more
than 42 percent of Dell's outstanding
stock.
Investors love warrants
because they offer an extra chance to share in a company's upside potential — in cases in which the warrant is exercisable at a preset purchase price that turns out to be less
than the
stock's market value.
The Murdoch family, which controls Fox, prefers a deal with Disney
because it would rather be paid in Disney
stock than Comcast
stock, and expects a potential deal with Disney to be cleared by U.S. antitrust regulators more easily, one of the sources said.
That's
because many big enterprises regularly issue more
stock than they buy back, using the proceeds for repurchase of new shares from newly exercised options and vested restricted
stock, for M&A, and for secondary offerings.
Just
because a company will eventually fail does not mean its
stock won't go up now and a rising
stock can keep spiking longer
than you can stay short if you fight a solid uptrend.
My reasoning: Return would be lower
than Dividend Investing above
because index funds need to hold
stocks yielding 1 and 2 % as well as those yielding > 3 %.
We chose the NYSE and NASDAQ as exchanges for analysis
because they are the world's two largest
stock exchanges; they together experience over 60 % of daily U.S. equity trade volume; and experience more
than two thirds of all mini flash crashes [16].
The facts are not right here, energy is cheap that means the cost of manufacturing and transporting of goods is low, food and consumers staples already more affordable, so what if a few American oil companies going out of business.the cost of producing oil in middle east is less
than $ 10 / bl and we were paying more
than $ 140 / bl for it, with that huge profit margin the big oil companies and oil producing nations became richer and the rest of us left behind, with the oil price this low the oil giants don't want to reduce the price at pump even a penny,
because they are so greedy.worst case scenario is some CEOs bonuses might drop from $ 20 million to $ 15 millions I am sure they will survive.in terms of the
stock market it always bounces back, after all it's just a casino like game.
It can help you differentiate between a less -
than - perfect
stock that is selling at a high price
because it is the latest fad among
stock analysts, and a great company which may have fallen out of favor and is selling for a fraction of what it is truly worth.
Benjamin Graham was fond of averaging profit per share for the past seven years to balance out highs and lows in the economy
because, if you attempted to measure the p / e ratio without it, you'd get a situation where profits collapse a lot faster
than stock prices making the price - to - earnings ratio look obscenely high when, in fact, it was low.
In the aftermath of the Great Recession of 2008 - 2009, technology
stocks traded at lower price - to - earnings ratios
than many other types of businesses, such as consumer staples,
because investors were frightened.
It was, in fact, the ultimate value
stock because the discounted present value of the actual, real future cash earnings was far greater
than the
stock price at the time.
However,
because they are comprised of a basket of actual
stocks, ETFs are generally much less volatile
than the individual small to mid-cap growth
stocks we trade in bull markets.
The effect of equal weighting is keener for XRT
than for some other equal - weight funds
because XRT draws retail
stocks from the broad S&P Total Market Index, not the large - cap - oriented S&P 500.
Although the long - term returns on real estate are less
than common
stocks as a class (
because an apartment building can't keep expanding), real estate can throw off large amounts of cash relative to your investment.
Because stock prices at the market open tend to be higher
than the price at the previous day's close, you don't actually have to stay up all night and trade on an electronic network to rack up overnight gains.
Because of the ten - to - one voting ratio between our Class B and Class A common
stock, the holders of our Class B common
stock collectively will hold more
than a majority of the combined voting power of our common
stock upon the completion of our initial public offering, and therefore such holders will be able to control all matters submitted to our stockholders for approval.
«I would say it's a little bit like we're willing to go with junk bonds rather
than AAA
stocks because the payoff is big,» he said in a 2013 interview with Bloomberg Television.
This is
because, historically, a portfolio with a larger proportion of
stocks experiences bigger price swings
than a more conservative mix of investments.
Small - cap
stocks, generally considered to be the best marker of tax cut expectations
because usually they pay higher effective tax rates
than larger companies, rallied into mid-February.
This is
because we always prefer to pick
stocks and ETFs by simply reacting to actual price and volume patterns in the market, rather
than attempting to predict what will happen.
Because while past performance does not guarantee future results,
stocks have historically had larger price swings
than bonds or cash.
That's
because average
stock market returns have been higher
than those on bonds and savings accounts over time.
Presumably this is
because T - bills are less risky
than stocks.
Bonds,
stocks and real estate, he writes, are overvalued
because of near zero percent interest rates and a developed world growth rate closer to zero
than the 3 % to 4 % historical norms.
For those who argue that China is poor
because capital
stock per worker in China is much lower
than in the advanced countries, and that China should aggressively increase investment to close the gap, the findings in this paper ought to be surprising.
Of course, just
because you select such a
stock does NOT necessarily mean it will always move faster
than others, but it definitely puts the odds in your favor.
For example, entering into an extensive position in a
stock has restricted possibility
because the investor can lose no more
than the initial amount invested.