Sentences with phrase «abrupt market»

At present, we don't observe that evidence, and I am much more concerned about abrupt market losses than about the possibility for significant market strength.

Low and expanding risk premiums are at the root of nearly every abrupt market loss.

Presently, speculators seem not to recognize how strongly the odds are stacked against them, and how steep and abrupt market losses could become.

These abrupt market movements were even more pronounced than similar developments in August, when a sudden correction in global financial markets was quickly succeeded by renewed buoyant market conditions.

Still, the current return / risk profile features highly «unpleasant skew» - in any given week, the single most likely outcome is actually a small advance, yet the average return in the current classification is quite negative, because those small marginal gains have typically been wiped out by steep, abrupt market plunges that erase weeks or months of gains in one fell swoop (see Impermanence and Full - Cycle Thinking for a chart).

Though there is a tendency toward abrupt market plunges, the initial market losses in 1972 and 2007 were recovered over a period of several months before second signal emerged, followed by a major market decline.

An unhedged position does take a certain amount of extended risk in the event of a deep and abrupt market crash, but as I've frequently noted, those have historically been confined to conditions of both unfavorable valuation and unfavorable market action.

In addition, based on the relatively unusual combination of overbought, overbullish conditions, inflation pressures, and the like, I once again staggered our put option strikes, which results in a lower «implied interest rate» earned on our hedges, in return for tighter protection in the event of an abrupt market selloff.

Not exact matches

That abrupt reversal was magnified many times over in a bitcoin market that doesn't have anything like the same liquidity or transparency as the market for official currencies.

Failure to agree on debt relief to Greece would not only make Greece's return to the markets more abrupt but also compromise the credibility of providing financial assistance to European countries.

Global bonds went on a wild rollercoaster ride last week, with the price swings being particularly abrupt in the U.S. and German markets, which have long been viewed as the safest and most liquid in the world.

Failure to agree on debt relief for Greece would not only make Greece's return to the markets more abrupt but could also compromise the credibility of providing financial assistance to European countries.

When the tech bubble burst in 2000, it triggered an extended bear market and brought an abrupt end to AIC's ascent.

Back at the school, CEIBS alumnus and school career development consultant Jeff Pi addresses the recent abrupt fall in China's stock market, and urges boot campers to look beyond specific events to «overall megatrends» in the country.

The selling has extended into other asset classes, notably commodities and high yield, and has been accompanied by an abrupt spike in market volatility.

Eight major media stocks suffered an abrupt and startling crash on Wednesday, eliminating a combined $ 37 billion in market value.

Looking forward, these sorts of abrupt swings in financial markets are likely to continue, amid sluggish economic growth, rising interest rates, high valuations and geopolitical uncertainties.

An abrupt rise in interest rates, concerns about rising inflation, and a potentially more hawkish Federal Reserve have created an equity market tantrum that now has the Dow and S&P 500 Index in full correction territory (a correction is a price decline of between 10 % and 20 %).

With market volatility hitting multi-decade lows, junk bond yields also at record lows, the median price / revenue ratio of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the potential for an abrupt «air pocket» in the prices of risky assets that could attend even a modest upward shift in risk premiums.

It has historically made sense to hedge against market fluctuations based on much less restrictive definitions of market conditions, but at present, the market is in a set of conditions that has almost invariably been followed by deep and abrupt losses, though often only after a further marginal advance over a small number of trading sessions.

As I observed in February (see Market Action Suggests Abrupt Slowing in Global Economic Growth):

The rather abrupt rise in interest rates this year has probably also played a part, and is certainly responsible for some of the increase in the stock market's volatility.

Prior to the advance of recent years, the list of these instances was: August 1929, the week of the bull market peak; August 1972, after which the S&P 500 would advance about 7 % by year - end, and then drop by half; August 1987, the week of the bull market peak; July 1999, just before an abrupt 12 % market correction, with a secondary signal in March 2000, the week of the final market peak; and July 2007, within a few points of the final peak in the S&P 500, with a secondary signal in October 2007, the week of that bull final market peak.

Given the additional overbought condition of the stock market, we should be concerned about abrupt downside risk, but as noted above, we are willing to soften our hedges in the event that market action improves sufficiently.

Following an abrupt air pocket in the market during August, the capitalization - weighted indices enjoyed a strong rebound in October.

However, as trillions in long - dated JGBs continue to carry negative yields, an abrupt withdrawal from the long - end could roil the market.

The key feature of 2016 Q1 was the abrupt sell - off between the start of the year and mid-February in financial markets — equities, lower - rated corporate bonds and commodities.

However, in an environment of extreme valuations, even fairly subtle deterioration in the uniformity of market internals should be taken as a signal of increasing risk - aversion among investors, and the market becomes vulnerable to steep and abrupt losses.

Stock market turmoil experienced in late January highlighted the strong link that exists between interest rates and equities, especially when moves on rates are abrupt.

Although there is no specific threshold for stock market crashes, they are generally considered as abrupt double - digit percentage drop in a stock index over the course of a few days.

When considering why the market staged such an abrupt pullback, we must begin with valuations.

Soon the Fed will be forced to continue to raise interest rates in an attempt to save the dollar and stop inflation from exploding; The first causality will be to exacerbate the crash of the Real Estate market; then comes the imploding of the stock and bond markets, followed closely by the credit markets as the take - over and privatizing craze comes to an abrupt end.

«The real estate market in 2017 was notable for the abrupt change through the spring,» noted RAHB CEO George O'Neill.

Among the evidence that would shift our expectations in this regard would be: material equity market deterioration, further weakness in regional Fed and purchasing managers indices, a slowing in real personal income, a spike in new claims for unemployment toward the 340,000 level, an abrupt drop in consumer confidence about 10 - 20 points below its 12 - month average, and at least some amount of slowing in employment growth and aggregate hours worked.

Presently, the market remains richly valued on normalized earnings, and is coming off of a speculative peak with an abrupt and persistent initial decline.

The «canonical» market peak typically features rich valuations, rising interest rates, often a reasonably extended and «flattish» period where, despite marginal new highs, momentum has gradually faded while internal divergences have widened, and finally, an abrupt reversal in leadership, from a preponderance of new highs over new lows (both generally large in number) to a preponderance of new lows over new highs, with the reversal often occurring over a period of just a week or two.

Prior to the advance of recent years, the list of these instances was: August 1929, the week of the market peak; August 1972, after which the S&P 500 would advance about 7 % by year - end, and then drop by half; August 1987, the week of the market peak; July 1999, just before an abrupt 12 % market correction, with a secondary signal in March 2000, the week of the final market peak; and July 2007, within a few points of the final peak in the S&P 500, with a secondary signal in October 2007, the week of that final market peak.

Barring some abrupt shock, I don't expect that the market will «clear» its present overvalued, overbought, overbullish condition and simultaneously wipe out positive trend - following measures in one fell swoop.

Airstrikes take place almost daily as part of ongoing campaigns such as the battle against the Islamic State, but focused initial missile strikes and military operations can have an abrupt impact on markets.

My European tour came to an abrupt halt when I accepted a position as marketing manager at Cell Media.

So it's never an abrupt change but a gradual introduction, first from niche markets and then going into larger and larger — scale applications.

Viral marketing is all the rage right now, especially after The Cloverfield Paradox «s clever viral campaign and abrupt release.

In certain instances, the calculated result is adjusted to take account of abrupt changes in the market that may not yet be fully reflected by recent transaction prices.

It was an early and abrupt lesson in market volatility.

Securities of small and medium capitalization companies may be subject to more abrupt or erratic market movements than those of larger, more established companies or the market averages in general.

The abrupt changes to markets, households, institutions, and government policies that have occurred are unlikely to be reversed soon, which will lead to an investing climate of muted world growth, where central banks and treasuries will find it difficult to undo the emergency steps taken, and overall output will fall below longer - term trends.

Even here, if we can clear some element of the hostile overvalued, overbought, overbullish, rising - yields syndrome that has characterized the market, we will be open to moderate, if transitory exposure to market fluctuations, provided that we maintain a line of index put option protection against any abrupt deterioration.

Looking forward, these sorts of abrupt swings in financial markets are likely to continue, amid sluggish economic growth, rising interest rates, high valuations and geopolitical uncertainties.

This doesn't necessarily resolve into immediate risks, but it could profoundly affect the path that the economy and financial markets take during the next few years, by making the unwinding of debt much more abrupt.

These securities may be subject to more abrupt or volatile market movements and may have lower trading volumes or more erratic trading than securities of larger - sized companies or the market averages in general.