There will be a time when
fear returns to the market and these securities will be able to be purchased much cheaper.
Not exact matches
While Bond King Bill Gross, founder of world's largest bond fund PIMCO, is going deep into California and New York munis, claiming the
returns are still the best in the
market despite the headline risk, even the discussion of bankruptcy as a bargaining chip has caused some
to fear bond
market hysteria.
The stock
market opened way down, continuing last Friday's selloff, though it has climbed back since the open — implying the
return of volatility — as skittish investors continue
to fear the sequence I describe in this AM's WaPo: tight labor
market, wage pressures, higher interest rates, inflation, lower profit margins.
Unfortunately, the
markets now perceive inflation
to be
returning and
fear central banks can no longer be gradual.
Highly volatile, low -
returning markets end in
fear, which leads
to higher -
returning markets with much lower volatility, followed by the eventual greed that starts the cycle again.
Then, just make your trades and hold out during the period of
fear and uncertainty, all while making a nice profit when the
market returns to sanity.
The iPath S&P 500 VIX Short Term Futures TM ETN (NYSE: VXX) jumped more than 8 percent on
fears that bearish
market volatility is
returning to the
market.
The 2008 Best of the Hot List includes articles about why stocks have consistently been the best way
to build wealth over the long - run, why
fear can present opportunities for long - term investors, and the
market's
returns under Democratic presidents.
Volatility
returned to the
markets in a big way in early February after inflation data triggered
fears of a faster rate - hike cycle by the Federal Reserve.
Seventy - seven per cent believe the
fear of poor
market performance is driving investors
to boost their cash holdings, even though 67 % view cash as ultimately leading
to «a guaranteed negative
return.»
A survey issued mid-July by BlackRock Canada's iShares of 551 Canadians with at least $ 100,000 in financial assets found
market fears are indeed driving investors
to cash even though most still expect poor
returns.
Jonathan Chevreau: If
fear is causing you
to sit on a pile of cash, know that the real
returns from bank accounts or money
market funds can be considered zero,...
Smith answers the question of downside risk by describing the LONG TERM
returns of the
market, and providing that information
to address the
fears of those who would invest in the
market, whether using the SM or other methods of investing.
A large number of working professionals
fear investing their money in stocks as they believe that they might not be able
to score a good
return and many of them also
fear that they may end up losing their money due
to market risk.
While I think it's reasonable
to lower your expectations for bond
market returns and allow for higher volatility because of the level of rates, it seems
to me that many of the
fears about fixed income are overblown.
What can prevent an investor from selling can be
fear of the tax implications of selling at a substantial gain, costs incurred by commissions, anxiety of missing perceived future gains or uncertainty of where
to place cash in an environment of continuing
market highs or cash low
returns.
We're refusing
to buy those value companies (GLW, AFL) because of a
fear that there are other opportunities for us in the
market that will outstrip their
return in the short term.
In other words, these
markets are not subject
to competition, where utilities are guaranteed a rate of
return and incumbent power sources operate without
fear of competition from cheaper renewables.
But the success of Amazon's baby wipes line may have rival diaper manufacturers
fearing Amazon's
return to the
market.
It's important
to note that a fair amount of the recent capital in the
market is driven by speculation from the astronomical
returns that cryptocurrencies have achieved in 2017, and a «
fear of missing out.»
Cointelegraph Bitcoin's price is taking a beating today as fresh fork talk appears
returning fear to the
markets.
Demand remains strong, he says; once buyers get past their
fear of buying at the height of the
market, they'll
return to the bargaining table.