The Uptick s Downside

Increasing leverage boosts returns on the upside but is very risky on the downside.

There is little downside risk.

In any case, downside risks are high, and room on the upside is essentially non existent.

Such politically expedient language has a strategic downside.

The economic crisis has exacerbated the perceived downside of globalization.

The United States represents another downside risk for global growth.

To prevent housing prices from overshooting on the downside, the number of foreclosures has to be kept to a minimum.

But there are downside and upside risks to this scenario.

So far, the downside and upside risks for the world economy are balanced.

As 2013 begins, the downside risks to the global economy are gathering force.

SEOUL Emerging economies are facing significant uncertainty and serious downside risks.

The IMF is absolutely right to remind ministers each April of downside risks.

But they cannot rule out the downside risk of a synchronized global downturn.

These investors do not view the 7 annual return on stocks as an average expectation, with downside risks counterbalanced by upside opportunities.

The big downside of the currency peg for Europe is supposed to be exports.

Without dismissing the downside risks, I remain cautiously optimistic about the global economy s prospects.

Fortunately, the Fed is finally facing up to the downside of its grandiose experiment.

Requiring managers to apprise investors of downside exposure would help even more.

There may sometimes be a downside in trying to woo your opponents.

Then, in early 1980s, when Dr. Frank Sortino developed formal definition of downside risk as a better measure of investment risk than standard deviation, downside risk has become the industry standard for risk management.

On the downside, confidence among consumers and investors alike has taken a hit, mainly owing to fears about radiation leakages and power shortages.

It's the downside correlation of their fortunes that will become more and more possible.

By encouraging industrial production directly, it is possible to have the upside without the downside.

The downside is that some momentum has been lost, especially at the G 20 level.

New ways to borrow and to spread risk seemed to have little downside.

But the downside of this aspirational language and philosophy can be a perpetual, personal restlessness.

This is not the only, or even the most important, downside risk facing the global economy.

This will constrain the ability of central banks to respond to the downside risks to growth.

The downside is that housing busts last equally long, because houses are such a durable good.

Big banks get a big taxpayer subsidy in the form of downside protection for their creditors.

Bankers get the upside and taxpayers (and people laid off as credit is disrupted) get the downside.

These institutions, attracted by the high rates of return that were promised, invariably neglected the downside risks.

The bankers get the upside when things go well, while the downside risks are largely someone else s problem.

On the downside, one of the most important risks is further financial contagion in Europe if the eurozone s problems spread as seems likely to Portugal, Spain, and Belgium.

The rise in food prices has exposed the downside of economic interdependence without global transfer and compensation schemes.

The collateral limits the lenders downside risk, and the fear of losing the pledged assets encourages borrowers to act prudently.

Most of the downside risk to this scenario lies in the systemically important economies of Europe, the US, and China.

While upside risks would be turned into dividends, downside risks would be limited to the stock of equity invested.

As such, this what if is a cautiously optimistic assessment of the downside risks stemming from weak external demand.

By being perceived as too big to fail, their banks benefit from a government backstop or downside guarantee.

Back in the early 1980 s, financial engineers invented portfolio insurance, a fancy active hedging strategy for controlling downside risk.

One downside to China s rapid growth is its rising demand for energy and the increased CO2 emissions that accompany it.

Recent market volatility has been partly a response to the apparent rise in the downside risk of policy paralysis or denial.

Similarly, humans tend to accept large downside risks in order to avoid small certain losses, such as insurance premiums.