Sentences with phrase «higher equity volatility»

Cheap credit makes the value of equity less volatile, hence a tightening of credit conditions will lead to higher equity volatility.»

Even with low interest rates, bonds and preferred shares also protect the portfolio during periods of higher equity volatility.

Not exact matches

«This is typical of a late cycle expansion which is another reason why multiples will be lower as higher volatility typically demands a higher equity risk premium.

In recent years they have added international equities and small - cap stocks — asset classes that come with higher volatility than sturdier blue chips, but also offer the promise of higher returns.

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.

According to Bloomberg data, the VIX Index, a proxy for U.S. equity market implied volatility, traded over 50 on Monday morning, the highest level since the financial crisis.

Such developments are characteristic of the current high volatility of China's mainland equity markets, Shanghai and Shenzhen, capping a year of exceptional gains.

I need to be able to ride out less volatile markets though (Equities have had more volatility lately, but that has not really translated to most other markets, like my highest volume grain sector.

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.

«Many participants reported that their contacts had taken the previous month's turbulence in stride, although a few participants suggested that financial developments over the intermeeting period highlighted some downside risks associated with still - high valuations for equities or from market volatility more generally,» the minutes said.

Finally, modestly higher bond yields support our view that the rotation into value and momentum shares away from low - volatility equities likely isn't over.

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.

To limit volatility within a pre-determined threshold, the fund can shift to fixed income and cash, favoring the fixed income component due to its greater negative correlation to equity and higher yields than cash.

We are positive on equities but expect higher volatility and more muted returns ahead.

«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.

, San - Lin Chung, Chi - Hsiou Hung and Chung - Ying Yeh examine the predictive power of investor sentiment for different kinds of stocks during bull (low - volatility, expansion) and bear (high - volatility, recession) equity market regimes.

Equity factors can be valued using fundamental metrics Value and Size are cheap while Low Volatility and Growth are expensive Likely more meaningful for medium - to long - term than short - term investors INTRODUCTION The term «Factor Investing» reached an all - time high this year according to Google

The bottom line: U.S. equities can move higher in 2015, but as we've already seen, the path is likely to be accompanied by much more volatility.

While the early - 2017 Federal Reserve minutes «expressed concern [about] the low level of implied volatility in equity markets,» it is worth noting that the SPX implied volatility levels at both 80 % and 90 % moneyness (corresponding with out - of - the - money puts used for portfolio protection) generally were much higher than the VIX levels.

Some members of the FOMC apparently «commented that the recent decline in equity prices needs to be viewed in the context of overall valuation levels, which they saw as relatively high, and a couple noted that volatility had begun to subside,» according to the Fed's minutes.

Now, as many investors worry about a global growth slowdown, rising rates and higher volatility in U.S. equity markets, dividend growers offer potential opportunities due to their healthy balance sheets, as well as better valuations, and lower volatility.

Dividend stocks are enticing to investors during periods of volatility because in such a market they tend to perform well relative to more growth - oriented or higher - risk equities.

As equities have ground ever higher over the past year, very large short - volatility positions have been building in the markets — largely in volatility - targeting strategies employed by institutional investors and leveraged exchange - traded products geared toward individuals.

High Risk — Income (H / INC) Medium to higher risk equities of companies that are structured with a focus on providing a meaningful dividend but may face less predictable earnings (or losses), more leveraged balance sheets, rapidly changing market dynamics, financial and competitive issues, higher price volatility (beta), and potential risk of principal.

As discussed in previous blogs, high yield spreads are one of the best coincident indicators of equity volatility.

We see central banks nearing the limits of extraordinary monetary easing, low returns across most asset classes as well as higher equity and bond volatility amid looming political risks and Federal Reserve (Fed) tightening.

Investors who have a longer time horizon and are willing to embrace more risk or volatility in their portfolio in exchange for the possibility of a higher return would select a fund with a higher equity holding — say LS80 or even LS100.

The Oakmark Equity and Income Fund invests in medium - and lower - quality debt securities that have higher yield potential but present greater investment and credit risk than higher - quality securities, which may result in greater share price volatility.

A return of market volatility appeared to give Goldman's traders an edge, with the department posting its highest equities trading revenue in three years.

Volatility soared when the United Kingdom voted to exit the European Union (EU), with the VIX index of U.S. equity market volatility spiking to near 2016 highs, as Bloomberg dVolatility soared when the United Kingdom voted to exit the European Union (EU), with the VIX index of U.S. equity market volatility spiking to near 2016 highs, as Bloomberg dvolatility spiking to near 2016 highs, as Bloomberg data shows.

What the chart above shows is that the fund has historically demonstrated a greater likelihood of dodging the dramatic swings the equity market has experienced in times of uncommonly high volatility.

Higher risk (higher yield) bonds tend to be closely correlated with equities which means that such bonds do not really dampen volatility or smooth out returns over time when combined with equities in a portHigher risk (higher yield) bonds tend to be closely correlated with equities which means that such bonds do not really dampen volatility or smooth out returns over time when combined with equities in a porthigher yield) bonds tend to be closely correlated with equities which means that such bonds do not really dampen volatility or smooth out returns over time when combined with equities in a portfolio.

In its proprietary trading, Systematic Strategies primary focus in on equity and volatility strategies, both low and high frequency.

The increased volatility and drawdown of the Emerging Market version is not surprising since emerging market equities have traditionally had higher volatility than large cap US equities.

So, to what extent will we see algorithmic, indiscriminate selling of equities, of assets in general as volatility moves higher?

In most instances of higher volatility, gold provides a hedge against not only equity risk but credit as well.

The higher volatility in equities also presents a challenge.

Low - volatility strategies typically have a high allocation to utilities, healthcare and consumer staples stocks, or to «deep value» equities.

Volatility looks to remain subdued keeping the bias higher for the equity index ETF's SPY, IWM and QQQ, despite the moves lower.

Stock / equity funds — As you probably guessed, stock funds have basically the same risks and rewards as individual stocks — high volatility, risk of losing money, easy to buy and sell, good investment to beat inflation, and historically among the best returns, on average over time.

Volatility ($ VXX) looked to remain at extremely low levels keeping the bias higher for the equity index ETF's $ SPY, $ IWM and $ QQQ.

This led to bouts of high volatility throughout the year and a generally lackluster performance in the equity markets.

For example, if you have a very high tolerance for risk — perhaps you have a spouse with a full pension so you're less concerned about stock market volatility — you might increase the level of equity you hold in your retirement savings.

That's the crux of the problem Ayres and Nalebuff identify: you either have lots of time and little money to take advantage of the higher returns on stocks, or you have lots of money and little time to ride out the volatility of the equity market.

The unconstrained strategy can be thought of in two ways: always trying to earn a positive return with high probability (T - bills are the benchmark, if any), or being willing to accept equity - like volatility while the bond manager sources obscure bonds, or takes large interest rate or credit risks.

Volatility ($ VXX) looked to remain subdued though keeping the bias higher for the equity index ETF's $ SPY, $ IWM and $ QQQ, despite their moves lower.

Volatility is back to very low levels keeping the bias higher for the equity index ETF's SPY, IWM and QQQ.

All Freedom Funds are subject to the volatility of U.S. and international equity and fixed income markets, and may be subject to risks associated with investing in high - yield, small - cap, and foreign securities.

Volatility ($ VXX) looked to remain subdued and possibly drifting lower keeping the bias higher for the equity index ETF's $ SPY, $ IWM and $ QQQ.