With the potential
for additional volatility and rate rises on the horizon, credit assets are less attractive at these levels.
Rising interest rates tend to extend the duration of mortgage - related securities, making them more sensitive to changes in interest rates and
exhibit additional volatility.
Bank loans and emerging - market debt offer attractive yields but come
with additional volatility relative to traditional bonds, so investors should consider the tradeoff and size positions accordingly.
Regulators all around the globe are in the process of creating the regulatory framework for cryptocurrency exchanges and trading activities — which could
create additional volatility in prices and trading volume.
And the diversified portfolio created very
little additional volatility along the way given that the two lines move in pretty close approximation of one another.
The «Tangency Portfolio» noted in the graph is the theoretical point at which you can maximize return without taking on substantial
additional volatility as compared to holding 100 % mid cap value stocks.
With the next Federal Open Market Committee Meeting three weeks away, we expect to
see additional volatility as investors consider the odds of a new rate hike.
The upcoming advance GDP reading could also
spur additional volatility, along with Trump's Fed Chairperson announcement which might happen anytime soon.
Finally, as the bulk of DEO expenses is in British pounds, the fact that England is leaving the Euro may create
additional volatility in its financial statements.
Similar to the stock diversification example in Article 7.1, there is a «tangency portfolio» of about 20 % stocks and 80 % bonds that historically has moderately boosted portfolio returns while adding
little additional volatility.
By late August, the DJIA had gained 44 percent in a matter of seven months, stoking concerns of an asset bubble.4 In mid-October, a storm cloud of news reports undermined investor confidence and led to
additional volatility in markets.
Greece may provide
some additional volatility for markets over the coming weeks as they may — or may not - abide by EuroZone bailout requirements.
And if you're an option - seller, either with cash - secured puts or covered calls, then
the additional volatility of the equal weighted indices can be turned from a disadvantage into an advantage.
Also, index options, over-the-counter options, and options on futures are exposed to
additional volatility and potential losses.
The presumption in that statement is that
the additional volatility was unacceptable.
The line of thinking behind this criticism is that
the additional volatility of small - cap stocks relative to large - cap stocks and value stocks relative to growth stocks is not sufficient to justify their much higher historical returns.
This reduces the amount of premiums it pays to retrocessionaires, but increases the maximum effect a single death claim can have on its results, and therefore may result in
additional volatility to its results.
However, before doing this, it is important for investors to understand
the additional volatility they are taking on in exchange for potentially higher returns, Raskie said.
Anyway, despite the FX fees, you are exposed to
additional volatility with the US dollar.
Perhaps we're due for
some additional volatility in 2018.
When the focus is on protecting from downside risks,
the additional volatility caused by the 10 - year bonds hurt retirement outcomes by more than could be compensated by their higher average yields.
This further reduces the income benefit of leverage to the common shareholder, while retaining
the additional volatility.