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.
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.
They're just as applicable
in low -
volatility markets as they are
in the
higher volatility markets with big swings.
«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.
«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.
Europe shares closed slightly
higher on Tuesday afternoon as investors reacted to fresh data from China and
volatility in currency
markets.
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.
«It doesn't take much to be a catalyst for
higher volatility,» said Peter Cecchini, managing director and chief
market strategist at Cantor Fitzgerald
in New York.
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.
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.
The
market environment
in 2018 looks more normal than last year, with lower returns and
higher volatility.
At that point, the
market will hit a supply crunch, which would likely result
in higher volatility and
higher prices.
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.
Higher volatility is likely across financial
markets, especially
in the first and second quarters as new policies and their implementation come into focus.
The selling has extended into other asset classes, notably commodities and
high yield, and has been accompanied by an abrupt spike
in market 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.»
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).
Combined, these instances capture a cumulative 97 % loss
in the S&P 500, but there's really not much difference based on the 200 - day moving average, except that the
market tends to experience more violent declines and somewhat stronger rebounds (that is,
higher overall
volatility) when the S&P 500 is below that average.
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.
The asymmetric
volatility phenomenon is the observed tendency of equity
market volatility to be
higher in declining
markets...
And I think that given
higher volatility in the
markets, going into
higher yielding bonds or stocks, the risker ones, is unadvisable.
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.
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.»
«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.
Indeed,
volatility measures have spiked to multi-month
highs lately, with 2016 experiencing the worst start to a year
in market history, according to Bloomberg data.
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.
In high -
volatility markets, you may want to consider going as
high as 75 %.
In a slightly bearish
market, it's important that the
volatility be relatively
high from a historical perspective.
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.
Highly volatile, low - returning
markets end
in fear, which leads to
higher - returning
markets with much lower
volatility, followed by the eventual greed that starts the cycle again.
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.
The most significant problem, however, is that the
market is strenuously overbought here, and many precarious technical conditions (such as an extremely low option
volatility index - the VIX - and an extremely
high McClellan Oscillator) are
in place.
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.
In the second quarter, funding costs will be
higher related to long - term debt and capital instruments, while the bank also cautioned that
market volatility remains muted.
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
Here we show that traders with exogenously induced short - term elevations
in cortisol adopt riskier investment strategies and that
higher overall cortisol
in the
market predicts
higher aggregate mispricing and
volatility.
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.
The dollar bond
market has turned cold for Indian firms after a record 2017, with rising global interest rates, geopolitical concerns and
market volatility prompting would - be financiers to demand either a
higher yield or invest only
in short - term paper maturing
in two years.
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.