Sentences with phrase «hedge volatile stock markets»

Gold is accumulated for a myriad of reasons, including to hedge volatile stock markets, to offset fluctuating commodities prices, and as a safe haven against falling home prices.

Not exact matches

Hedge funds designed to protect against falling and volatile markets have made a strong pitch to investors: Trust us with your money, and we'll make lots of it for you when years of relatively smooth, positive stock returns inevitably end.

Complementing traditional investments, Ross points out that real estate is less volatile (unlike stocks, it's not marked to market every day); provides diversification with a favorable balance of risk versus return; is favorably taxed via capital gains tax treatment and interest deductibility; generates returns similar to the stock market and «often more»; provides principal protection; a hedge against inflation and a pension - like «monthly coupon.»

As long as some portion of an investor's portfolio is in foreign stocks, evidence suggests that those stocks should not be currency - hedged for three reasons: (1) Currency unhedged portfolios are not much more volatile than currency - hedged ones (and less volatile for US markets) and (2) Currency hedging appears to add about 1 % extra cost and (3) Some currency unhedged positions reduce overall portfolio volatility.