Sentences with phrase «higher beta stocks»

All five major indices closed well in the black with higher beta stocks showing the most strength.

High beta stocks showed the most relative strength as the small - cap Russell 2000, S&P MidCap 400 and Nasdaq managed gains of 0.7 %, 0.5 % and 0.4 % respectively.

When this group is richly valued - as it is now - high beta stocks underperform the market by an incredible 28.5 percent.

GMO's Investment Strategist Jeremy Grantham has noted that high beta stocks underperform the market during bear markets (suffering a peak to trough real return of -9 percent).

When I read about Beta, I wonder about just buying and holding the highest Beta stocks on earth for the long run.

Grice shows that over long periods of time low beta stocks outperform high beta stocks due in part to this:

Of course, the same holds true for when the market is down 1 %, a high beta stock will be down more than 1 %, while a low beta should be down less than 1 %.

My point was that if you select high beta stocks during a bull market you should expect to outperform the averages, and likewise, when the market turns down you should expect to underperform significantly.

High beta stocks rally more than the broad stock index in a bull market.

This also means that a high beta stock will fall more than the index when the broad market goes down.

Explore differences between accessing high beta stocks with either mutual funds or ETFs, as well as the best options for long - term holds and trading.

High beta stocks tend to have bigger gains during bull markets and bigger losses during bear markets.

No doubt Ed will have more info on this, but the paper «Betting Against Beta» by Frazzini & Pedersen to which he refers above can be found at http://www.econ.yale.edu/~af227/pdf/Betting%20Against%20Beta%20-%20Frazzini%20and%20Pedersen.pdf The basic idea of the paper is that investors are apt to bid up high beta stocks because it's a way of leveraging their portfolio without actually borrowing to invest.

He postulated that it was the incentive systems of long only fund managers that led them to seek pseudo-leverage through high beta stocks leading to them being systematically overvalued.

James Simons likely points to high beta stocks when asked.

I follow high beta stocks which falls more than the rest.

What's behind the performance of high beta stocks?

The strong quarterly performance of high beta stocks makes sense when you consider that high beta can outpace low volatility during periods of rising 10 - year Treasury yields and stronger economic growth, when investor demand for defensive stocks may ease.

In sectors, financials and energy were weak — high beta stocks that have done well since Trump's election.

Not exact matches

Recent grads with big dreams and uncertain futures often think of themselves as «high - beta stocks,» he writes:

High - beta stocks are simply the shares of companies whose stocks trade with above - average volatility — and like the twin peaks of a two - humped financial camel, these stocks carry both above - average risk and, potentially, above - average reward.

If you are a recent graduate, looking for a job, or simply trying to decide what to do next, you might believe that you are akin to a volatile high - beta stock — an awkward - looking mammal burdened with both extraordinary risk and, if you can just make all the right choices, potentially unlimited reward.

In order to achieve these type of gains, the stocks we swing trade are typically high beta, with plenty of volatility.

For example, investors typically equate higher beta or riskier «glamor stocks» with momentum.

Growth stocks are high beta, when they fall they fall hard.

And you do not have to buy high beta (volatile) stocks.

«As the market climbs to new highs, investors are paying more attention to the short side of their books and making sure they have sufficient hedging positions of either ETFs or beta stocks to recoup long - side losses if the market drops,» Dusaniwsky says.

SUMMARY It's difficult to rationalise why there should be excess returns from high quality stocks The Quality factor needs to be constructed beta - neutral to achieve positive returns Exposure to the Quality factor is an attractive hedge for an equity - centric portfolio INTRODUCTION The concept of

How can investors best exploit research showing that low - beta (high - beta) stocks tend to outperform (underperform)?

Options on highly liquid, high - beta stocks make the best candidates for short - term trading based on RSI.

A bear market tends to favor lower volatility stocks while a bull market favors higher beta / growth stocks.

If you think AAPL will go down (and it might), that means the Bull market is over and you'll do much better shorting overpriced high - beta stocks.

Generally, the higher a stock's beta, the more volatile it is.

A stock that performs 50 percent worse than the S&P 500 in a down market and a stock that performs 50 percent better than the S&P 500 in an up market will each have a high beta.

To Burkly's point, six of the eight highest - beta stocks have fallen 20 percent or more over the past year, perhaps reflecting the propensity of volatility to the downside to outpace volatility to the upside.

NASDAQ stocks, especially those with high betas, fell last Thursday because of a JPMorgan equity research note expressing caution about Baidu's (NASDAQ: BIDU) 3Q revenue estimates.

Also, you can assemble your DGI portfolio to have less volatility (beta) than the index by a higher allocation to stocks in consumer staples and utilities sectors.

The idea behind this theory is that, as big investors sense that smaller - cap, higher - beta stocks have reached a point of overvaluation and high risk, these investors move money from the overvalued stocks into the Dow stocks, which are traditionally considered more stable and more liquid.

«If oil prices do weaken into next year, and... [the] supply - demand analysis we «ve done tells us that, these stocks should do relatively better than most of the smaller, higher - beta energy stocks,» he said.

These stocks all carry high Betas, reflecting to a large degree their sensitivity to trends in the broader economy.

From an investment perspective, a high Beta is one of the most notable features of the typical Manufacturing & Mining stock.

The Enhanced Inflation Timer uses one additional criterion in the buy rule for stocks (and sell rule for bonds); high - beta stocks must perform better than low - beta stocks.

This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

His theory is the Emerging Markets have added beta over US stocks and may perform better in the future due to higher expected GDP growth.

This is because the very long - term leases that underpin their steady and predictable cash flows (new leases are generally for 15 to 20 years) also create a higher beta to yield (i.e. their stock prices react more severely to movements in interest rates).

Low - beta stocks therefore offer higher expected returns because you take on the risk of losing everything without the reward of the higher upside.

It appears that you can benefit by actually avoiding high - beta stocks like the plague.

But instead of dividing the universe of stocks into 10 equal groups he picked 100 stocks with the highest betas and another group of 100 with the lowest betas.

If its shareholders were constantly buying and selling the stock, the beta for Honda would be much higher.

This is alluring as studies have shown that the low beta stocks have the highest returns.