According to the update, while bitcoin was uncorrelated to other asset prices at year - end 2017 during the rally, ever since the bubble has begun to «deflate» in the new year it's more closely correlated
with other risk assets such as stocks.
My view is this: given the wide level of investing in alternative investments, there is no reason why they should outperform, and no reason why they should be uncorrelated
with other risk assets, because the same owners own both.
Not exact matches
«Finally, the increased role of bond and loan mutual funds, in conjunction
with other factors, may have increased the
risk that liquidity pressures could emerge in related markets if investor appetite for such
assets wanes.»
Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions
with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft; 6) the effect on aircraft demand and build rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or
other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements
with Boeing and our
other customers; 11) our ability to enter into profitable supply arrangements
with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts
with our two major customers, Boeing and Airbus, and
other customers, and the
risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or
other security attacks, information technology failures, or
other disruptions; 16) returns on pension plan
assets and the impact of future discount rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and
other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships
with the unions representing many of our employees; 24) spending by the U.S. and
other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness of any interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and
other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and
other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the
risks of doing business internationally, including fluctuations in foreign current exchange rates, impositions of tariffs or embargoes, compliance
with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among
other things.
Bhanu Baweja, head of emerging market cross
asset strategy at UBS, says the tax, combined
with other regulations, could help reduce financial
risks.
«In soliciting investments in the Fake Funds, CASPERSEN made the following false representations to investors, among
others: in recognition for his prior work
with Park Hill Group, CASPERSEN had been offered a «friends and family» investment allocation in a security that was allegedly offered by a private equity firm; CASPERSEN was personally investing in the security, and offering it to his family and a limited number of friends; the investment was a credit facility secured by a portfolio of
assets owned by one of the Legitimate Funds; the investor would receive quarterly interest payments, ranging from 15 to 20 percent; the investment was practically
risk - free, as the loaned funds would remain in a bank account; the investor could withdraw the principal at any time
with 90 days» notice; and investor funds should be wired to one of the Fake Fund Accounts.
Despite having share prices that move
with market prices, these funds can give rise to first - mover advantages for redeeming shareholders and create the potential for destabilizing waves of redemptions and
asset fire sales if liquidity buffers and
other tools to manage liquidity
risk prove insufficient.
Actual results, including
with respect to our targets and prospects, could differ materially due to a number of factors, including the
risk that we may not obtain sufficient orders to achieve our targeted revenues; price competition in key markets; the
risk that we or our channel partners are not able to develop and expand customer bases and accurately anticipate demand from end customers, which can result in increased inventory and reduced orders as we experience wide fluctuations in supply and demand; the
risk that our commercial Lighting Products results will continue to suffer if new issues arise regarding issues related to product quality for this business; the
risk that we may experience production difficulties that preclude us from shipping sufficient quantities to meet customer orders or that result in higher production costs and lower margins; our ability to lower costs; the
risk that our results will suffer if we are unable to balance fluctuations in customer demand and capacity, including bringing on additional capacity on a timely basis to meet customer demand; the
risk that longer manufacturing lead times may cause customers to fulfill their orders
with a competitor's products instead; the
risk that the economic and political uncertainty caused by the proposed tariffs by the United States on Chinese goods, and any corresponding Chinese tariffs in response, may negatively impact demand for our products; product mix;
risks associated
with the ramp - up of production of our new products, and our entry into new business channels different from those in which we have historically operated; the
risk that customers do not maintain their favorable perception of our brand and products, resulting in lower demand for our products; the
risk that our products fail to perform or fail to meet customer requirements or expectations, resulting in significant additional costs, including costs associated
with warranty returns or the potential recall of our products; ongoing uncertainty in global economic conditions, infrastructure development or customer demand that could negatively affect product demand, collectability of receivables and
other related matters as consumers and businesses may defer purchases or payments, or default on payments;
risks resulting from the concentration of our business among few customers, including the
risk that customers may reduce or cancel orders or fail to honor purchase commitments; the
risk that we are not able to enter into acceptable contractual arrangements
with the significant customers of the acquired Infineon RF Power business or otherwise not fully realize anticipated benefits of the transaction; the
risk that retail customers may alter promotional pricing, increase promotion of a competitor's products over our products or reduce their inventory levels, all of which could negatively affect product demand; the
risk that our investments may experience periods of significant stock price volatility causing us to recognize fair value losses on our investment; the
risk posed by managing an increasingly complex supply chain that has the ability to supply a sufficient quantity of raw materials, subsystems and finished products
with the required specifications and quality; the
risk we may be required to record a significant charge to earnings if our goodwill or amortizable
assets become impaired;
risks relating to confidential information theft or misuse, including through cyber-attacks or cyber intrusion; our ability to complete development and commercialization of products under development, such as our pipeline of Wolfspeed products, improved LED chips, LED components, and LED lighting products
risks related to our multi-year warranty periods for LED lighting products;
risks associated
with acquisitions, divestitures, joint ventures or investments generally; the rapid development of new technology and competing products that may impair demand or render our products obsolete; the potential lack of customer acceptance for our products;
risks associated
with ongoing litigation; and
other factors discussed in our filings
with the Securities and Exchange Commission (SEC), including our report on Form 10 - K for the fiscal year ended June 25, 2017, and subsequent reports filed
with the SEC.
These
assets also have a low association
with other classes of
assets, thus lowering investors» overall
risk profile.
My point was and is that the equity
risk premium is bundled up closely
with the nature of the security itself (i.e., being a publicly traded, relatively liquid investment
asset called an equity, that has a very specific bundle of rights and
risks attached to it), which has very different characteristics than the many
other financial
assets available in the economy (many of which have bundles of
risk that are perceived as «riskier», and many of which are perceived as «less risky»).
The news triggered another round of buying after yesterday's rally in equities and
other risk assets,
with the Japanese Yen also selling off in a sign of a more bullish investor sentiment.
The Fund is subject to substantially the same
risks as those associated
with the direct ownership of the securities or
other assets represented by the exchange - traded products («ETPs») in which the Fund invests.
On the
other hand, real estate can be controlled much easier by investing correctly in
assets that are under market value
with multiple exit strategies that help increase the return on the investment while decreasing the
risk.
Important factors that may affect the Company's business and operations and that may cause actual results to differ materially from those in the forward - looking statements include, but are not limited to, operating in a highly competitive industry; changes in the retail landscape or the loss of key retail customers; the Company's ability to maintain, extend and expand its reputation and brand image; the impacts of the Company's international operations; the Company's ability to leverage its brand value; the Company's ability to predict, identify and interpret changes in consumer preferences and demand; the Company's ability to drive revenue growth in its key product categories, increase its market share, or add products; an impairment of the carrying value of goodwill or
other indefinite - lived intangible
assets; volatility in commodity, energy and
other input costs; changes in the Company's management team or
other key personnel; the Company's ability to realize the anticipated benefits from its cost savings initiatives; changes in relationships
with significant customers and suppliers; the execution of the Company's international expansion strategy; tax law changes or interpretations; legal claims or
other regulatory enforcement actions; product recalls or product liability claims; unanticipated business disruptions; the Company's ability to complete or realize the benefits from potential and completed acquisitions, alliances, divestitures or joint ventures; economic and political conditions in the United States and in various
other nations in which we operate; the volatility of capital markets; increased pension, labor and people - related expenses; volatility in the market value of all or a portion of the derivatives we use; exchange rate fluctuations;
risks associated
with information technology and systems, including service interruptions, misappropriation of data or breaches of security; the Company's ability to protect intellectual property rights; impacts of natural events in the locations in which we or the Company's customers, suppliers or regulators operate; the Company's indebtedness and ability to pay such indebtedness; the Company's ownership structure; the impact of future sales of its common stock in the public markets; the Company's ability to continue to pay a regular dividend; changes in laws and regulations; restatements of the Company's consolidated financial statements; and
other factors.
Important factors that may affect the Company's business and operations and that may cause actual results to differ materially from those in the forward - looking statements include, but are not limited to, increased competition; the Company's ability to maintain, extend and expand its reputation and brand image; the Company's ability to differentiate its products from
other brands; the consolidation of retail customers; the Company's ability to predict, identify and interpret changes in consumer preferences and demand; the Company's ability to drive revenue growth in its key product categories, increase its market share or add products; an impairment of the carrying value of goodwill or
other indefinite - lived intangible
assets; volatility in commodity, energy and
other input costs; changes in the Company's management team or
other key personnel; the Company's inability to realize the anticipated benefits from the Company's cost savings initiatives; changes in relationships
with significant customers and suppliers; execution of the Company's international expansion strategy; changes in laws and regulations; legal claims or
other regulatory enforcement actions; product recalls or product liability claims; unanticipated business disruptions; failure to successfully integrate the business and operations of the Company in the expected time frame; the Company's ability to complete or realize the benefits from potential and completed acquisitions, alliances, divestitures or joint ventures; economic and political conditions in the nations in which the Company operates; the volatility of capital markets; increased pension, labor and people - related expenses; volatility in the market value of all or a portion of the derivatives that the Company uses; exchange rate fluctuations;
risks associated
with information technology and systems, including service interruptions, misappropriation of data or breaches of security; the Company's inability to protect intellectual property rights; impacts of natural events in the locations in which the Company or its customers, suppliers or regulators operate; the Company's indebtedness and ability to pay such indebtedness; tax law changes or interpretations; and
other factors.
Many factors could cause BlackBerry's actual results, performance or achievements to differ materially from those expressed or implied by the forward - looking statements, including, without limitation: BlackBerry's ability to enhance its current products and services, or develop new products and services in a timely manner or at competitive prices, including
risks related to new product introductions;
risks related to BlackBerry's ability to mitigate the impact of the anticipated decline in BlackBerry's infrastructure access fees on its consolidated revenue by developing an integrated services and software offering; intense competition, rapid change and significant strategic alliances within BlackBerry's industry; BlackBerry's reliance on carrier partners and distributors;
risks associated
with BlackBerry's foreign operations, including
risks related to recent political and economic developments in Venezuela and the impact of foreign currency restrictions;
risks relating to network disruptions and
other business interruptions, including costs, potential liabilities, lost revenues and reputational damage associated
with service interruptions;
risks related to BlackBerry's ability to implement and to realize the anticipated benefits of its CORE program; BlackBerry's ability to maintain or increase its cash balance; security
risks; BlackBerry's ability to attract and retain key personnel;
risks related to intellectual property rights; BlackBerry's ability to expand and manage BlackBerry ® World ™;
risks related to the collection, storage, transmission, use and disclosure of confidential and personal information; BlackBerry's ability to manage inventory and
asset risk; BlackBerry's reliance on suppliers of functional components for its products and
risks relating to its supply chain; BlackBerry's ability to obtain rights to use software or components supplied by third parties; BlackBerry's ability to successfully maintain and enhance its brand;
risks related to government regulations, including regulations relating to encryption technology; BlackBerry's ability to continue to adapt to recent board and management changes and headcount reductions; reliance on strategic alliances
with third - party network infrastructure developers, software platform vendors and service platform vendors; BlackBerry's reliance on third - party manufacturers; potential defects and vulnerabilities in BlackBerry's products;
risks related to litigation, including litigation claims arising from BlackBerry's practice of providing forward - looking guidance; potential charges relating to the impairment of intangible
assets recorded on BlackBerry's balance sheet;
risks as a result of actions of activist shareholders; government regulation of wireless spectrum and radio frequencies;
risks related to economic and geopolitical conditions;
risks associated
with acquisitions; foreign exchange
risks; and difficulties in forecasting BlackBerry's financial results given the rapid technological changes, evolving industry standards, intense competition and short product life cycles that characterize the wireless communications industry.
These
risks and uncertainties include food safety and food - borne illness concerns; litigation; unfavorable publicity; federal, state and local regulation of our business including health care reform, labor and insurance costs; technology failures; failure to execute a business continuity plan following a disaster; health concerns including virus outbreaks; the intensely competitive nature of the restaurant industry; factors impacting our ability to drive sales growth; the impact of indebtedness we incurred in the RARE acquisition; our plans to expand our newer brands like Bahama Breeze and Seasons 52; our ability to successfully integrate Eddie V's restaurant operations; a lack of suitable new restaurant locations; higher - than - anticipated costs to open, close or remodel restaurants; increased advertising and marketing costs; a failure to develop and recruit effective leaders; the price and availability of key food products and utilities; shortages or interruptions in the delivery of food and
other products; volatility in the market value of derivatives; general macroeconomic factors, including unemployment and interest rates; disruptions in the financial markets;
risk of doing business
with franchisees and vendors in foreign markets; failure to protect our service marks or
other intellectual property; a possible impairment in the carrying value of our goodwill or
other intangible
assets; a failure of our internal controls over financial reporting or changes in accounting standards; and
other factors and uncertainties discussed from time to time in reports filed by Darden
with the Securities and Exchange Commission.
Business owners who, as a normal course of business, create a potential
risk of injury to themselves or
others should purchase business or personal liability insurance in addition to sheltering their
assets with the LLC.
This data across many
asset classes helps support low latency traders and
other applications dealing
with portfolio pricing,
risk and compliance.
I think those are bogus, because inflation and investment returns are weakly related when it comes to
risk assets like stocks and any
other investment
with business
risk, even in the long run.
Specifically, you simply move along the efficient frontier and into
other risky
assets with lower
risk and more diversification, e.g. bonds.
Calomiris proposes (1) internal governance reforms that would decentralize power within the Fed and promote diversity of thinking; (2) policy process reforms that would narrow the Fed's primary mandate to price stability and require the Fed to adopt and disclose a systematic approach to monetary policy; and (3)
other reforms that would constrain the Fed's
asset holdings and activities so as to avoid actions that conflict
with its monetary policy mission and that
risk undermining its independence.
The trouble
with VAR and
other mathematical models of
risk is that if it becomes the dominant paradigm, and everyone begins to use it, it creates distortions in the market, because institutions gravitate to
asset classes that the model makes to appear artificially cheap.
Real
assets are subject to the
risks associated
with real estate, commodities, master limited partnerships, and
other investments and may not be suitable for all investors.
Examples of these
risks, uncertainties and
other factors include, but are not limited to the impact of: adverse general economic and related factors, such as fluctuating or increasing levels of unemployment, underemployment and the volatility of fuel prices, declines in the securities and real estate markets, and perceptions of these conditions that decrease the level of disposable income of consumers or consumer confidence; adverse events impacting the security of travel, such as terrorist acts, armed conflict and threats thereof, acts of piracy, and
other international events; the
risks and increased costs associated
with operating internationally; our expansion into and investments in new markets; breaches in data security or
other disturbances to our information technology and
other networks; the spread of epidemics and viral outbreaks; adverse incidents involving cruise ships; changes in fuel prices and / or
other cruise operating costs; any impairment of our tradenames or goodwill; our hedging strategies; our inability to obtain adequate insurance coverage; our substantial indebtedness, including the ability to raise additional capital to fund our operations, and to generate the necessary amount of cash to service our existing debt; restrictions in the agreements governing our indebtedness that limit our flexibility in operating our business; the significant portion of our
assets pledged as collateral under our existing debt agreements and the ability of our creditors to accelerate the repayment of our indebtedness; volatility and disruptions in the global credit and financial markets, which may adversely affect our ability to borrow and could increase our counterparty credit
risks, including those under our credit facilities, derivatives, contingent obligations, insurance contracts and new ship progress payment guarantees; fluctuations in foreign currency exchange rates; overcapacity in key markets or globally; our inability to recruit or retain qualified personnel or the loss of key personnel; future changes relating to how external distribution channels sell and market our cruises; our reliance on third parties to provide hotel management services to certain ships and certain
other services; delays in our shipbuilding program and ship repairs, maintenance and refurbishments; future increases in the price of, or major changes or reduction in, commercial airline services; seasonal variations in passenger fare rates and occupancy levels at different times of the year; our ability to keep pace
with developments in technology; amendments to our collective bargaining agreements for crew members and
other employee relation issues; the continued availability of attractive port destinations; pending or threatened litigation, investigations and enforcement actions; changes involving the tax and environmental regulatory regimes in which we operate; and
other factors set forth under «
Risk Factors» in our most recently filed Annual Report on Form 10 - K and subsequent filings by the Company
with the Securities and Exchange Commission.
deCODE's actual results could differ materially from those anticipated in the forward - looking statements as a result of
risks and uncertainties, including, without limitation, (1) the impact of the announcement of its bankruptcy filing on deCODE's operations; (2) the ability of deCODE to maintain sufficient debtor - in - possession financing to fund its operations and the expenses of the Chapter 11 proceeding; (3) the ability of deCODE to obtain court approval of its motions in the Chapter 11 proceeding; (4) the outcome and timing of the proposed sale of deCODE's
assets, including deCODE's ability to close a transaction
with SagaInvestments, LLC or any
other purchaser; (5) the uncertainty associated
with motions by third parties in the bankruptcy proceeding; (6) deCODE's ability to obtain and maintain normal terms
with vendors and service providers and contracts that are critical to its operation; and (7)
other risks identified in deCODE's filings
with the Securities and Exchange Commission, including, without limitation, the
risk factors identified in our most recent Annual Report on Form 10 - K and any updates to those
risk factors filed from time to time in our Quarterly Reports on Form 10 - Q or Current Reports on Form 8 - K.
The
other issue I am wrestling
with is the category of balanced funds, where I am increasingly concerned that the three usual
asset classes of equities, fixed income, and cash, will not necessarily work in a complementary manner to reduce
risk.
Vanguard shareholders, on the
other hand, pay the company only $ 138 million to manage $ 82 billion in funds
with similar
asset allocations and levels of
risk.
In a bust, all risky
assets become highly correlated
with each
other, invalidating ideas of
risk control through diversification.
In addition, investments in all
other asset classes might be associated
with foreign currency
risks.
But just keep in mind that the stock market has a lot of ups and downs, and the
risk of loss is much higher
with stocks than
with other asset classes such as bonds or cash.
At the same time, though, they are embracing
risk of loss, a fear that has been more or less pervasive ever since the stock market crashed in 2008, taking
with it just about every
other asset class except: well, you know, cash!
The importance of correlation in the investing world comes from the simple (and Nobel Prize winning) insight that since investors naturally seek to minimize
risk, what they should do is construct portfolios
with assets that have as low a correlation
with each
other as possible.
As
with any
other asset, stocks come
with some
risks because companies don't always register positive results.
Risks associated
with derivatives (including «short» derivatives) include losses caused by unexpected market movements (which are potentially unlimited), imperfect correlation between the price of the derivative and the price of the underlying
asset, increased investment exposure (which may be considered leverage), the potential inability to terminate or sell derivatives positions, the potential need to sell securities at disadvantageous times to meet margin or segregation requirements, the potential inability to recover margin or
other amounts deposited from a counterparty, and the potential failure of the
other party to the instrument to meet its obligations.
The short answer: inflation is a significant
risk, but you're probably better able to protect against it
with other assets in your portfolio than you are
with an inflation rider on your income annuity.
The basic idea was to encourage older investors who have made gains in the
risk assets, typically stocks, though it would apply to high yield bonds and
other non-guaranteed investments that are highly correlated
with stocks.
By contrast, there are
other firms, such as Personal Capital and my firm, Rebalance IRA, where we have similar investment philosophies and similar use of technology, but we have real, live investment advisors who deal extensively
with clients and match them
with the right
asset allocation, low - cost underlying portfolios, very low cost, and disciplined rebalancing, which is really an essential
risk management and return tool.
An insurer will take into account your
assets, your
risk factors, and several
other items when presenting you
with a quote.
The trouble
with VAR and
other mathematical models of
risk is that if it becomes the dominant paradigm, and everyone begins to use it, it creates distortions in the market, because institutions gravitate to
asset classes that the model makes to appear artificially cheap.
I think those are bogus, because inflation and investment returns are weakly related when it comes to
risk assets like stocks and any
other investment
with business
risk, even in the long run.
You will have to have adequate collateral and you are
risking your home or
other important
assets to cover the cost of paying off balances not necessarily associated
with those
assets.
But an even more important part of that strategy is deciding how much you can reasonably withdraw from savings in 401 (k) s, IRAs and
other retirement accounts each year without running too high a
risk of depleting your
assets too soon — or ending up
with a large pile of
assets late in life and realizing that you unnecessarily stinted and might have enjoyed life more earlier in retirement.
In general, you can take greater
risk with investable
assets when you have
other, more stable sources of funds available.
Interest rate
risk is the
risk inherent
with loans, bonds and
other interest bearing
assets.
Because the SPDR SSgA Active
Asset Allocation ETFs are actively managed, they are therefore subject to the
risk that the investments selected by SSgA may cause the ETFs to underperform relative to their benchmarks or
other funds
with similar investment objectives.
Paul shares the latest research on how to combine value portfolios
with other asset classes to produce low -
risk portfolios for those saving toward retirement as well as those taking distributions in retirement.
In fact, it's important to consider keeping at least some
assets in stocks or
other investments
with good growth potential to protect against the
risk of outliving savings.
The fund's portfolio may underperform the general equity markets, or
other asset classes,
with the potential for greater individual security
risk,
asset class
risk, and higher industry concentration
risk than more broadly diversified portfolios.
Over time, small - cap stocks have provided exposure to a segment of the equity market that has offered faster growth, good
risk - adjusted returns, and relatively low correlation
with larger - cap stocks and
other asset classes.