Sentences with phrase «upside return potential»

In a covered - call strategy — one popular way of generating income in the equity market — it's selling some of the upside return potential in a stock for income today.

Not exact matches

Unlike equity, convertible debentures «would pay an attractive rate of return from the beginning, and they offered our investors the chance to convert to equity, with its upside potential, at a date later in the company's development,» says Troy.

While rebalancing might reduce your portfolio's upside potential in the near term, it also can lessen the possible downside when a market correction occurs, potentially enhancing your longer - term returns (see chart below).

Based on recent experiences for U.S. banks, we think European banks have further upside potential, despite double - digit returns in 2017.

Madison's investments provide an attractive return profile with limited downside risk, significant upside potential, credit rated cash flow, and medium and long term capital appreciation.

If Fitbit can eventually return to growth and profitability, driven by successful smartwatch products and its healthcare initiatives, the stock has a tremendous amount of potential upside.

That's the trade - off we're making whenever we make a high - yield trade: We're limiting our potential upside in return for guaranteed income.

The greater likelihood of realpolitik meanwhile returning to Japanese energy policy remains for us one potential upside factor.

He also considers average and median terminal wealth / bequest, tail risk, annual volatility (standard deviation of annual returns) and upside potential.

This potential for downside protection and upside participation is how min vol portfolios have delivered strong risk adjusted returns over the long term, with smaller bumps in the road.

The only upside to that trade is that the Dolphins look like a team that might do much worse next year so that has the potential of being a top 5 pick, but I'd be pretty disappointed with that return.

Yet we believe equities offer a better risk - reward profile than credit given their potential for greater upside in returns and more balanced downside risks.

High valuations bring about lower returns, greater downside risk and limited upside potential.

For example, the real estate sector has returned on average 6 percent for every one percent of GDP growth but has very little foreign revenue exposure, so may be a strong sector to overweight for both diversification to international equity exposure and for upside potential with U.S. economic growth.

Add in dividends and a little bit of upside potential (since most of these are a little bit out of the money) and you're on your way to 10 % + return for the year.

In fact, they would need to be paid quite handsomely to give up the fabulous upside potential of uncertain returns.

Given the dim outlook for a traditional 60/40 balanced portfolio, emerging markets are one of the few assets with the upside potential to meet the return needs of an investor.

However, they do cap the credit amount to limit upside potential so that in years where there is an index return of 22 %, you will only be credited the max, or cap rate, associated with your policy.

But you unnecessarily give up upside potential if you go with the most predictable 10 - year return available (the one obtained by investing 100 percent in TIPS).

Risk is uncertainty In regards to the good ol' risk - return debate, Stephen has a great perspective: «Investing -LSB-...] is a matter of trading off downside risk for upside potential.»

But for those who want to safeguard their hard - earned assets in their retirement savings accounts and are willing to forego some upside potential in return for safety and minimum guarantees, both fixed rate and fixed index annuities need to at least be considered.

Lastly, if you're more bullish on these stocks, and want to leave some room for upside potential, there are some out of the money trades that have an if - flat (meaning stock remains unchanged) annualized return well over 1 % / month:

In somewhat similar vein, you can obviously equate earnings yield to RoME, but that would perhaps miss the point — with an analysis, how you get there is often just as important as the end - result... If you re-read that section of my post, the important point is to force myself (or readers) to stop focusing on book value, or intrinsic value, or even the potential upside — and to re-focus more specifically on what kind of return may be on offer, based on the current market cap & ignoring any revaluation potential.

At current levels, NG shares seem to provide a good risk / return profile with multiple upside potential against limited downside.

These days, I'd happily accept much more limited upside potential, in return for greater financial stability and / or lower correlation (s).]

I determined the mean, mean plus and minus one standard deviation, probability of exceeding the Minimum Acceptable Return (MAR) for levels of 0 % and 2 % (approximately), below target deviation, upside potential and upside ratio for all individual segments.

Certain structured products impose limits on return potential in the form of a «cap» or may limit your participation in the upside performance of the linked index or customized basket (see below).

Such opportunities offer asymmetric returns: the downside risk is minimal, while the upside potential is high.

Which is actually a highly respectable return fr what is a low - risk / uncorrelated special situation... with the best of its upside potential +

Now, while I believe there's a low probability of negative 5 year returns, these scenarios shouldn't necessarily imply highly asymmetric upside potential's on offer either... Of course, that will depend on the specific odds you attach to the likelihood of each scenario actually occurring — Scenarios III & IV may require an improved macro / FX environment, a stabilisation / turn - around in dynamic hedging & currency for return, and / or a possibly more aggressive new business approach.

If Brett is right, it would be unwise to expect just as crazy returns as Netflix has seen in the past, but there could still be some upside potential in the company after all, for those investors who have decided to arrive late to the party.

Of course, with this alternative, you also have to NPV back that projected $ 180 mio of annual operating expenses... but in return, I guess, you get all the upside of that potential pipeline / portfolio.

While the 85.86 % total return over the past 16 years is not fantastic, I have positioned myself for excellent upside potential in the years approaching my retirement.

That way I avoid the worst interest rate risk and lower risk - adjusted return of long bonds and add some upside potential from the stocks.

We believe this strategy has positioned the Growth eREIT ™ to earn an attractive risk - adjusted base return with the potential for a significant upside return depending on future events.

It will still be based on a fixed annuity chassis and full principal protection, but the call option (typically one year) strategies for potential upside will have a real chance for better than CD returns.

Because IULs may offer a higher potential upside rate of return, they do not offer the same kinds of guarantees concerning ongoing cash accumulation (supplemented by a strong history of dividends) as that offered by traditional whole life insurance.

Many disagree with me on this, but I feel it's the safest way to manage capital, meaning the best combination of protection (margin of safety) on the downside and potential for above average returns on the upside.

The Nicholas investment style tends to appeal to investors willing to forego some upside in market cycles for a more consistent return with the potential for less downside risk.

This offers a 335 % Upside Potential, with annualized returns also v attractive even if a wind - down takes a few years.

Institutional investors often avoid these stocks despite the potential upside beyond 12 months as non-movement can drag on portfolio returns.

Over the last decade or so, Tulum real estate has increased dramatically in value, with investors seeing massive returns of up to 300 % or higher, but the market is far from saturated and there is still incredible upside potential for those who buy land in this part of Mexico's Riviera Maya.

While the policies provide greater upside potential, flexibility, and tax - free gains, there are caps on returns and no guarantees as to the premium amounts or market returns.

Given the huge upside price potential of a Bitcoin ETF approval and limited downside as the price of bitcoin has been stabilizing, it is not surprising that more traders are buying bitcoin and, thereby, pushing up the price as bitcoin's current risk / return ratio is positively skewed toward the upside.

«You will be compensated with high potential returns for taking those risks now,» he said, pointing to three - to - 10 years ahead when cryptocurrencies will be a «more established asset class,» at which time volatility will be more akin to what's normal in the equity and bond markets, with higher upside potential.

When the cost of money is that low, you can afford to overpay and you're going to make a profit on cash flow and you have a giant potential for upside returns in an appreciating market.

As these trends become better understood, the seniors housing will increasingly become a more established real estate product offering for investors who seek to diversify their portfolios and add upside potential to their returns.

Where can you find houses for sale with the best upside potential as a high return property investment?

The goal is to provide our institutional partners with attractive risk - adjusted returns to provide a stable, current income yield with upside potential.