Before contemplating trading of cryptocurrency, it is important to consider and very well understand / appreciate
the high volatility of this market.
Not exact matches
LONDON, April 23 - Hamstrung by a renewed slump in
volatility and lack
of clear
market direction, FX and bond speculators are making historically big bets on a lower dollar and
higher yields.
«While common wisdom has it that
higher volatility necessarily signals a discrete end to the [bull
market], it is often the case that
higher vol is a natural occurrence in the «late innings»
of extended rallies, particularly when the Fed is raising rates, as was the case in late 1999 - 2000,» he wrote.
Matthew Riley, head
of research at Natixis Global Asset Management, told CNBC on Monday that «there's a lot
of uncertainty at the moment, certainly geopolitical uncertainty from what we read is pretty much
high although
market volatility is quite low.
«We believe it critical for a listing exchange to ensure a
high - quality displayed quote to reduce the cost
of capital and share price
volatility for its issuers, and in the absence
of broader
market structure reform, exchange - paid quoting incentives are a necessary mechanism in a highly fragmented US marketplace to support liquidity for listed companies,» Cunningham said in a letter to clients emailed to Business Insider.
The beginning
of his tenure has been defined by ramped up
market volatility, a pickup in rates and the consensus that inflation is ticking
higher after a prolonged period
of price suppression.
Timmer: You know, the last two years until the January
high, were really extraordinary times for the
market, and I fear that investors got spoiled by that, because the S&P was up I think 52 % in two years and in 2017 the
volatility — the standard deviation
of those returns — was at an all - time low
of 3.9.
The
higher volatility of bear
markets tends to chop up these funds over time.
Market Makers also provide another service in periods of high volatility: if the market exerts upward or downward pressure on a security during a trading session, the Market Maker will mitigate the pressure by absorbing some of the orders, thereby limiting excessive price s
Market Makers also provide another service in periods
of high volatility: if the
market exerts upward or downward pressure on a security during a trading session, the Market Maker will mitigate the pressure by absorbing some of the orders, thereby limiting excessive price s
market exerts upward or downward pressure on a security during a trading session, the
Market Maker will mitigate the pressure by absorbing some of the orders, thereby limiting excessive price s
Market Maker will mitigate the pressure by absorbing some
of the orders, thereby limiting excessive price swings.
Actual results, including with respect to our targets and prospects, could differ materially due to a number
of factors, including the risk that we may not obtain sufficient orders to achieve our targeted revenues; price competition in key
markets; the risk that we or our channel partners are not able to develop and expand customer bases and accurately anticipate demand from end customers, which can result in increased inventory and reduced orders as we experience wide fluctuations in supply and demand; the risk that our commercial Lighting Products results will continue to suffer if new issues arise regarding issues related to product quality for this business; the risk that we may experience production difficulties that preclude us from shipping sufficient quantities to meet customer orders or that result in
higher production costs and lower margins; our ability to lower costs; the risk that our results will suffer if we are unable to balance fluctuations in customer demand and capacity, including bringing on additional capacity on a timely basis to meet customer demand; the risk that longer manufacturing lead times may cause customers to fulfill their orders with a competitor's products instead; the risk that the economic and political uncertainty caused by the proposed tariffs by the United States on Chinese goods, and any corresponding Chinese tariffs in response, may negatively impact demand for our products; product mix; risks associated with the ramp - up
of production
of our new products, and our entry into new business channels different from those in which we have historically operated; the risk that customers do not maintain their favorable perception
of our brand and products, resulting in lower demand for our products; the risk that our products fail to perform or fail to meet customer requirements or expectations, resulting in significant additional costs, including costs associated with warranty returns or the potential recall
of our products; ongoing uncertainty in global economic conditions, infrastructure development or customer demand that could negatively affect product demand, collectability
of receivables and other related matters as consumers and businesses may defer purchases or payments, or default on payments; risks resulting from the concentration
of our business among few customers, including the risk that customers may reduce or cancel orders or fail to honor purchase commitments; the risk that we are not able to enter into acceptable contractual arrangements with the significant customers
of the acquired Infineon RF Power business or otherwise not fully realize anticipated benefits
of the transaction; the risk that retail customers may alter promotional pricing, increase promotion
of a competitor's products over our products or reduce their inventory levels, all
of which could negatively affect product demand; the risk that our investments may experience periods
of significant stock price
volatility causing us to recognize fair value losses on our investment; the risk posed by managing an increasingly complex supply chain that has the ability to supply a sufficient quantity
of raw materials, subsystems and finished products with the required specifications and quality; the risk we may be required to record a significant charge to earnings if our goodwill or amortizable assets become impaired; risks relating to confidential information theft or misuse, including through cyber-attacks or cyber intrusion; our ability to complete development and commercialization
of products under development, such as our pipeline
of Wolfspeed products, improved LED chips, LED components, and LED lighting products risks related to our multi-year warranty periods for LED lighting products; risks associated with acquisitions, divestitures, joint ventures or investments generally; the rapid development
of new technology and competing products that may impair demand or render our products obsolete; the potential lack
of customer acceptance for our products; risks associated with ongoing litigation; and other factors discussed in our filings with the Securities and Exchange Commission (SEC), including our report on Form 10 - K for the fiscal year ended June 25, 2017, and subsequent reports filed with the SEC.
Stocks are falling as traders worry about rising interest rates, and
volatility as measured by the VIX has jumped to its
highest since the
market turmoil
of August 2015.
Although value stocks typically hold up better in times
of volatility, this bull
market has been exceptionally smooth — up until the last year, that is — and favored
high - growth momentum stocks, which tend to have more expensive valuations.
The most recent such crisis, and the continued
volatility of the
markets, means stock in the views
of NYU professor Nouriel (Dr. Doom) Roubini has never been
higher.
The
market volatility index, otherwise known as the VIX and even better known as the fear gauge — a measure
of the expected
volatility of U.S. stocks — has surged to the
highest level in more than two years.
The determination
of Albertsons» majority owner, private equity firm Cerberus Capital Management LP, to carry out the IPO despite
volatility in the stock
markets underscores its confidence that it can fetch a
high valuation for Albertsons.
Poon said the Fed's gradual withdrawal
of liquidity is having a global impact, causing
higher market volatility in both the U.S. and Hong Kong.
Congress and the Obama administration have created
high levels
of uncertainty that continue to create
volatility and a negative bias in the
markets, the money manager says.
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.
Longer term, emerging
markets are the drivers
of global economic growth and investors would do well to have some exposure, even if it comes with
higher volatility.
They also developed new rules, known as circuit breakers, allowing exchanges to halt trading temporarily in instances
of exceptionally large price declines.12 For example, under current rules, the New York Stock Exchange will temporarily halt trading when the S&P 500 stock index declines 7 percent, 13 percent, and 20 percent in order to provide investors «the ability to make informed choices during periods
of high market volatility.»
If you start to trade this
market with a complex trading system it will be nearly impossible for you to deal with the
market variables during the
high level
of volatility.
The stochastic discount factor is time varying and by just the right amount to explain the variance in returns (and the
high volatility of the stock
market).
Such developments are characteristic
of the current
high volatility of China's mainland equity
markets, Shanghai and Shenzhen, capping a year
of exceptional gains.
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.
With a bit
of help from the broad
market, $ IBB could soon see a
volatility expansion and breakout above the
highs of the range (above the $ 148 level).
A sudden fear
of surging inflation and
higher interest rates helped ignite the past week's stomach - churning stock
market losses and violent bouts
of volatility.
The asymmetric
volatility phenomenon is the observed tendency
of equity
market volatility to be
higher in declining
markets...
And, as noted by Christopher Metli, in our Institutional Equity Division, there was an unusually
high number
of volatility shorts in the
market heading into this week, which may help to explain (some
of) the large swings in VIX.
As a result
of higher exchange rate
volatility, both during the crisis and subsequently,
market participants and policymakers became keenly aware
of the need for better exchange rate risk management.
Given the expected uncertainty and potential
volatility in the coming year, I think avoiding
high - priced mistakes and management teams that lack integrity — 2 things that owners
of an entire
market index
of companies can not easily avoid — may prove helpful.
The FBI agent quoted in the DOJ complaint stated: «I know that SARAO preferred to trade during periods
of high market volatility.»
This week's winners in the
market plunge appear to be the banks, which have yielded a windfall in fee income resulting from a
higher number
of trades during the current
volatility.
The investments are subject to the
volatility of the financial
markets, including that
of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in
high - yield, small - cap, and foreign securities.
For example, some time back HFT was blamed for
higher volatility in the cattle
market, even though such trading represents a smaller fraction
of cattle trading than it does for other contracts, and especially since there is precious little in the way
of a theoretical argument that would support such a connection.
Among them are factors I've discussed at length elsewhere — a weaker U.S. dollar, a steadily flattening yield curve, heightened
market volatility, overvalued U.S. stocks, expectations
of higher inflation, trade war jitters, geopolitical risks and more.
The Japanese yen has always been a strong performing currency, often looked to as a safe option during times
of high volatility in the forex
markets.
Figure 5 illustrates that despite an increase in
market volatility, consumers» confidence in the strength
of the economy remains
high, well above index levels for 2017.
But this unexpectedly sanguine report was a reminder that the beginning
of a Fed tightening cycle could be near, and the subsequent selloff is a clear sign that the U.S.
market is vulnerable to
higher volatility in the near term, even though we like the long - term prospects
of stocks.
Indeed, once our estimated
market return / risk profile is strictly negative (as it is at present), the negative implications for the S&P 500 aren't affected by the position
of the
market relative to that average, except that the
market tends to experience
higher volatility once the
market breaks that average.
This absolutely could go sidewise: Zillow is already being hammered in the stock
market — investors aren't generally fans
of high - margin companies entering low - margin businesses, with huge amounts
of volatility risk to boot.
High - speed computer traders are taking advantage
of volatility in the
market for cryptocurrencies
These risks and uncertainties include food safety and food - borne illness concerns; litigation; unfavorable publicity; federal, state and local regulation
of our business including health care reform, labor and insurance costs; technology failures; failure to execute a business continuity plan following a disaster; health concerns including virus outbreaks; the intensely competitive nature
of the restaurant industry; factors impacting our ability to drive sales growth; the impact
of indebtedness we incurred in the RARE acquisition; our plans to expand our newer brands like Bahama Breeze and Seasons 52; our ability to successfully integrate Eddie V's restaurant operations; a lack
of suitable new restaurant locations;
higher - than - anticipated costs to open, close or remodel restaurants; increased advertising and
marketing costs; a failure to develop and recruit effective leaders; the price and availability
of key food products and utilities; shortages or interruptions in the delivery
of food and other products;
volatility in the
market value
of derivatives; general macroeconomic factors, including unemployment and interest rates; disruptions in the financial
markets; risk
of doing business with franchisees and vendors in foreign
markets; failure to protect our service marks or other intellectual property; a possible impairment in the carrying value
of our goodwill or other intangible assets; a failure
of our internal controls over financial reporting or changes in accounting standards; and other factors and uncertainties discussed from time to time in reports filed by Darden with the Securities and Exchange Commission.
The current state
of the global economy threatens to cause further tightening
of the credit
markets, more stringent lending standards and terms and
higher volatility in interest rates.
You know, how do I get income in my portfolio, I'll use bait, I'll use some
of the
high - yield
market, I'll use short
volatility, I'll create leverage in my portfolio through margin, et cetera.
Unfortunately, there aren't enough names with that large
of a
market cap and when two
of them are bigger than the rest
of the sector combined, funds are forced to add smaller companies to the mix, along with the challenges they can bring like
higher volatility, wider spreads and more uncertainty over earnings.
«If we start to see equity
markets selling off and
volatility moving
higher, the way that global capital flows move is there's usually repatriation
of Japanese investors having overseas investments where they bring that money home, and U.S. investors also tend to bring their money home,» he said.
Recent winners in the
market plunge appear to be the banks, which have yielded a windfall in fee income resulting from a
higher number
of trades during the current
volatility.
There will be
higher highs and
higher lows but there will still be
volatility which is a hallmark
of this
market.
Is outperformance
of low -
volatility stocks just a manifestation
of the value premium (outperformance
of stocks with
high book - to -
market ratios compared to stocks with low book - to -
market ratios)?
Extreme
volatility,
high correlation and a lack
of intrinsic value all spell trouble for the cryptocurrency
market, according to Goldman Sachs.