Caps on the number of charters in a state drag down performance as much as lax oversight, because they cramp the diversification of the market and discourage investment.
The diversification of the target market from only eBay to other merchant services over the past decade, has fueled this growth.
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The expansion and diversification of the tablet PC market, however, is forecast to fuel an increase in demand for tablet PC panels and Samsung will aim to expand sales of LCD and OLED panels for smartphones.
At the beginning of the bull market, the diversification provided by a fund was a good way of reducing risk.
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The genius of the free market is that this kind of diversification is the natural and privileged product of the inherent logic of markets.
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The bottom line: The resumption of easy money policy by the Federal Reserve in the aftermath of the 2008 financial crisis has re-affirmed and broadened the positive correlation of different asset categories, undermining the effectiveness of asset diversification strategy in reducing market risk.
Consequently, it is not surprising that investors do not understand advanced financial concepts such as differences between stocks and bonds, the role of the stock market, and the value of portfolio diversification.
However, our exports to the U.S. are still far from what they could be, considering the quality and diversification of our products and the U.S. market I mentioned.
As such, by acquiring Warner Chilcott, Actavis has voted with its feet and enhanced its own ambitions of diversification away from the generics market.
While helping all asset categories to rally, the Greenspan put had an undesired consequence: it caused a synchronous one-direction move across asset categories, undermining the effectiveness of asset diversification in lowering market risks.
These would include: an investor cannot pick the return but can only choose the level of risk, One cannot accurately predict the market, Diversification lowers risk, Invest to be on the Efficient Frontier and low cost investments can improve performance vs. high costs.
Diversification and regular rebalancing may decrease the impact of market volatility, but the risk of losing money will still exist.
In the meantime it's building 11 more plants around the country, as part of a diversification strategy designed to weather what could be severe downturns in the electricity market in certain regions such as Texas and the Midwest.
Rebalancing and diversification would have only cushioned the blow of the last bear market, not prevented your portfolio from losing money.
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On a similar note, one of our emerging market debt managers added diversification and was able to return over 40% during one of the rising rate periods.
But the Algroup deal spooked the market, which saw it as a return to the bad days of over-diversification.
For further evidence of diversification, they recently announced the completion of their acquisition of Mepha AG which gives them a place in the generic market.
The common assumption that has prevailed among money managers over time is that asset allocation among stocks, bonds and cash helps to mitigate the risk of suffering market losses through diversification.
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This may eventually lead to a merger of Ifil with Fiat, opening the door to an outside investor being brought in to rescue the Fiat Auto division, which is labouring under a heavy dependence on the Italian market, a lack of scale and earlier diversification into difficult emerging markets such as Brazil.
In the meantime it's building 11 more plants around the U.S. as part of a diversification strategy designed to weather what could be severe downturns in the electricity market in such regions as Texas and the Midwest.
BlackRock uses a modified market weighting only where it would otherwise run up against diversification regulations, as in the case of the Peru and Israel funds, Ms Ting says.
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