Sentences with phrase «when equities decline»

The end result of such a decision, however, may be portfolios with higher total - return potential but greater downside risk when equities decline.

As shown below, they have provided a compelling offset when equities decline.

Not exact matches

Additionally, bonds typically generate regular income for investors, which can potentially help stabilize portfolios when equity markets decline.

However, when the real estate market declines 15 % / yr, the equity investments also decline 10 % / yr, and one realizes they are paying (in my case 5 % / yr) for the privilege of losing money while paying for a home eventually sold for 30 % less than one paid, I can feel pretty stupid!

Assuming that the total amount of bad debt in the banking system exceeds total bank capital — something which is almost certainly true — the conversion of debt which can not be serviced into an equity position that is unlikely to generate much more (and in an economic downturn, which is when we are most concerned about the debt burden, we can assume that the decline in value of these equity positions will be highly correlated) leaves the net indebtedness of the banking system unchanged, and so the contingent liabilities of the government are unchanged even as reported debt in the system declines.

Short - term government bonds generally offer stability and low growth and are the bungee in your portfolio that slows its decline in value when equities plunge.

Even then, if equities are tanking 20 % or more while bonds decline in single digits, you're still better off living off your bonds and resolutely not selling equities when they're down.

For example, when the equity markets are declining, bond prices usually are more stable.

Looking at TSLA's historical short interest chart and one can see that the negative investor sentiment or volume of shares sold short continues to decline, a far departure from June when Tesla was named the largest shortest stock in the U.S. equity market.

When prices are stagnant of falling, equity typically declines.

Additionally, bonds typically generate regular income for investors, which can potentially help stabilize portfolios when equity markets decline.

The good news about Home Affordable Refinance Program is that you can still refinance your home even when it has declined in value or you little equity in your home.

Significant declines are part of a full market cycles and should actually benefit the strategy when we are able to potentially sell the hedge at a significant profit and purchase more equity at a lower price while also an expectation of increased profits from our option selling as demonstrated in 2009.

It's simple math: Homeowners who withdraw equity from their home end up with larger mortgages and bigger mortgage payments — and assume greater risk when property values decline.

When chosen this carefully, Graham found that further declines in these undervalued equities occurred infrequently — offering upside with little market risk.

After spending too much time doing analysis and research (I have a PhD to do) I decided to invest in Cadence Capital, a Listed Investment Company run by Karl Siegling whose investment philosophy I thought a good one (to buy undervalued and well run companies, only when prices were already on the rise or short overpriced equities, only when prices were declining)-- I still think this is an excellent LIC, and it has returned over 18 % p.a. since inception over 10 years ago.

However, investors should not be concerned about high multiples because when volatility is low, equity markets are much less likely to decline.

This portfolio allows the investor to be aggressive, but improve the odds of reducing their risk to permanent loss by better shielding the portfolio from stock market declines during periods when the equity markets are riskier than normal.

When refinancing your home to pay off debts, remember this also reduces the equity in your home, which could be an issue in the future if the value of your home declines.

It gets even harder when the company has declining return on equity (ROE), patchy earnings per share (EPS) growth, high debt, and an aggressive growth strategy.

However, times like these — when the market has declined substantially — are much better times to buy equities.

When home prices decline, lenders have no way to compel homeowners to add more equity, like the margin calls employed by stock brokers when investors buy shares with borrowed moWhen home prices decline, lenders have no way to compel homeowners to add more equity, like the margin calls employed by stock brokers when investors buy shares with borrowed mowhen investors buy shares with borrowed money.

However in a declining market no equity is gained when no principal is paid down.

«Near frictionless» refinancing opportunities, when they occur simultaneously with declining interest rates and rising home prices, create a «ratchet» effect in which homeowners exchange the equity they've built in their homes for debt they can't easily «unwind,» the study said.

Notably, when corporate earnings peak as a percentage of GDP and begin to decline, equity prices can continue to rise.

The vacation from volatility equity investors seemed to be so enjoying came to an abrupt end during the first week of February when stocks sold off aggressively as evidenced by an 8.5 % decline in the Dow Jones Industrial Average (the Dow) between January 26 and February 5.

Certain stocks may decline in value even during periods when the prices of equity securities in general are rising, or may not perform as well as the market in general.

In that case, an asset - sensitive entity's economic value of equity increases when prevailing rates rise or declines when prevailing rates fall.

When The American Lawyer released its Am Law 100 report last week, many noticed a correlation between increased PPP (profits per partner) on the one hand and the decline in the number of equity partners and growth in the category of non-equity partners on the other.

But when the automaker, Paul Elio himself and Lichter — who has reportedly invested $ 20 million in debt and equity in the company and has a 30 percent stake in Elio Motors — were approached with additional questions for this story, a spokesperson declined.

When your loan balance declines to 78 percent — your equity is 22 percent — your loan servicer is required by federal law to terminate premium payments.

When prices are stagnant of falling, equity typically declines.