I should have some more capital next week, so I'm hoping
for more volatility.
Over the long term, small capitalization stocks have produced higher returns than large cap stocks but in exchange
for more volatility.
Investors with shorter - term investment horizons should be cognizant of the impact that rising interest rates have had on their bond portfolios, and be ready
for more volatility as the new administration's policies are implemented beginning in January.
But despite high prices and the potential
for more volatility, there is still a very good reason to continue to own government bonds: diversification.
I'm waiting
for more volatility and lower levels.
As BlackRock's Heidi Richardson suggests, the stage is still set
for more volatility, and there are steps investors can take to prepare for it.
Investors with shorter - term investment horizons should be cognizant of the impact that rising interest rates have had on their bond portfolios, and be ready
for more volatility as the new administration's policies are implemented beginning in January.
For one, be prepared
for more volatility as debt negotiations continue between Greece and its creditors, even though we believe compromises are likely.
As BlackRock's Heidi Richardson suggests, the stage is still set
for more volatility, and there are steps investors can take to prepare for it.
As BlackRock's Heidi Richardson suggests, the stage is still set
for more volatility, and...
Not exact matches
Arguments that exchange - traded funds increase market
volatility or can even cause a market crash are popular these days, and the Facebook stock tanking provided one
more chance
for the ETF naysayers to make their case.
The
volatility of bitcoin has made it
more useful as a vehicle
for speculation than as a currency, say critics — when the value can change drastically from hour to hour, it introduces undesirable risk
for sellers and buyers alike.
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volatility could kill this risky Social Security strategy
«We have to pay attention to what we are wishing
for here, if
volatility is triggered by sudden changes in the macroeconomic environment, which we don't expect,
more particularly geopolitical events, that wouldn't be a welcomed
volatility for sure,» he said.
The benchmark index
for equity
volatility rose to
more than twice its level the day before, crushing bettors who'd gotten used to years of very low
volatility.
Cryptocurrencies» extreme
volatility dissuades many people from using them to pay
for things, and vendors from allowing payments in Bitcoin — it's too hard to accurately price things in Bitcoin, and when the value is rising there's
more to gain from hoarding Bitcoins than from spending them.
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volatility for most Americans, new study finds Tax bill will slash by half the number of homeowners claiming the mortgage deduction
Take
for instance the findings of a recent study by Morgan Stanley that shows
more diverse workplaces deliver better returns and less
volatility.
LINGERING
VOLATILITY: Shaken after months of a relatively subdued market, Wall Street is bracing
for more severe swings ahead.
Federal Reserve Chairman Jerome Powell downplayed recent market
volatility and said the Fed is on track
for more rate hikes.
Designed to return the inverse of the Cboe
Volatility Index, or VIX, the fund was blamed
for exacerbating the stock market's drop of
more than 10 %.
It's been a tough road
for the anonymous
volatility vigilante
more commonly known as 50 Cent.
This means he is prepared to be
more forgiving in terms of past credit problems, will accept income
volatility among the self - employed, and will ease onerous requirements to produce bank records from other countries when it comes to writing mortgage insurance policies
for immigrants.
Although increased market
volatility might make traders
more dependent on Bloomberg's services in the short term, any contraction in global trade and capital markets would inevitably lower demand
for the company's services over time.
With the
volatility in the stock markets and financial sector, we feel as a company, that it is extremely important
for individuals to be
more diversified in there investments now, then at any other time in American history.
An above - average dividend yield (the MSCI Canada Energy Index is yielding an annualized dividend of 3.6 % versus 2.9 % on the overall MSCI Canada index, according to Bloomberg data as of July 31, 2017) and lower price
volatility could make energy a
more attractive sector
for income - seeking investors in a low yield world.
Now, after a volatile and tricky first quarter, investors are generally
more concerned again with many geopolitical concerns dominating the headlines and markets exhibiting
more volatility than they have
for many years.
Perhaps if we had the stomach
for a little
more volatility at the time, and raised interest rates beyond the expectations of the futures market, the severity of the ensuing crises could have reduced.
As
for what this means
for investors, there's one key takeaway: the ingredients are in place
for more financial market
volatility.
While most investors who have a long - term plan probably don't need to make any portfolio changes in anticipation of a spike in market
volatility, some
more active investors may want to take action to prepare
for a correction.
Instead, let's consider some of the underlying factors impacting the VIX — or
more correctly, the Chicago Board Options Exchange
Volatility Index, which reflect market estimates of future volatility — to see if we can properly frame what it means for investors an
Volatility Index, which reflect market estimates of future
volatility — to see if we can properly frame what it means for investors an
volatility — to see if we can properly frame what it means
for investors and traders.
For example, the largest U.S. pension, California Public Employees» Retirement System, is considering
more than doubling its bond allocation to reduce risk and
volatility as the bull market in stocks approaches nine years.
For example, if you're early on in your career, most of your money will be held in growth oriented stocks with a small percentage in bonds, and as you mature, your assets will slowly shift to
more stable stocks and a greater percentage in bonds to help reduce
volatility.
More importantly, they process and interpret information in the same was as speculators and rather than act to stabilize prices (by buying
for value when prices decline), they tend to enhance
volatility by reinforcing appreciation and depreciation expectations.
That means owning
more stocks, which offer the potential
for growth at the cost of higher
volatility.
«If you do have a lot
more risk than your situation warrants, that could be a recipe
for trouble if
volatility returns.»
More conservative investors could opt
for higher dividend, lower
volatility ETFs like Claymore S&P / TSX Canadian Dividend ETF (CDZ / TSX).
Overall, we expect
volatility to be ongoing throughout 2016, making it potentially a
more difficult environment
for investors.
As I discuss in my weekly commentary, be ready
for more rate
volatility.
Where these balance sheet improvements are most advanced, future financial distress will look
more like what we typically see in instances of financial stress in the major economies — substantial asset price
volatility and the potential
for substantial financial losses, but less in the way of a significant disruption to either short - run or long - run real economic growth.
For me personally, I like the 40 - day ATR because the longer period helps to give a
more accurate representation of a stock's
volatility, whereas a shorter period is
more susceptible to skewing by short - term news events.
For that reason, we would not rely on defenses that require the execution of stop - loss orders, being
more inclined toward index put options, particularly given low levels of implied
volatility here.
With a Price / ATR Ratio of
more than 70, Cisco Systems ($ CSCO) is too slow
for us and is an example of a low -
volatility stock we would not look to trade:
With U.S. stocks trading
for more than 20x trailing earnings, credit spreads tight and
volatility roughly 35 % below its long - term average, it is difficult to argue that investors are overly pessimistic (source: Bloomberg).
Given the
volatility of bitcoin, he could gain or lose money within days, essentially getting
more or less
for his home than he intended.
For the rest, a better approach may be seeking
more modest returns with lower
volatility, via a focus on portfolio construction, risk exposures and less traditional asset classes.
But as precipitous market moves in early February and late March suggested a return to
more historically normal levels of
volatility, the question
for investors now is how to adapt their approach to the new environment.»
Beyond
more sleepless nights, this shift in the
volatility regime has implications
for portfolio positioning.
As you can see when looking at the other asset allocations, adding
more fixed income investments to a portfolio will slightly reduce one's expectations
for long - term returns, but may significantly reduce the impact of market
volatility.
However, my personal favorite market to trade is the Forex market, mainly due to its deep liquidity which makes it easy to enter and exit the market, and also because the Forex market tends to have better trending conditions as well as
more volatility which makes
for better directional trading and allows price action trading to really shine.