These factors may also lead to periods
of high volatility in the financial markets and reduced liquidity in the bond markets.
Given bouts of
high volatility in bitcoin, it may be difficult to understand how this new Internet currency can act as a store of value.
One important point they make is that the low vol anomaly is more than the idea that stocks with low volatility outperform stocks
with high volatility.
In the two previous posts, we have looked at low volatility stocks vs.
high volatility stocks with trailing stops.
Alternative debt sources have entered the market to address funding gaps, specifically as construction volume has slowed given uncertainty around
high volatility commercial real estate criteria.
Overall, the portfolio is well placed
for higher volatility in the form of higher yields and wider credit spreads as markets reflect a more normal economic and policy environment.
Investment in smaller companies and narrowly focused investments, including single - country funds, typically
exhibit higher volatility.
Generally speaking, cryptocurrency markets have been characterized
by high volatility in the recent past.
Investors can thus use the
much higher volatility of equity prices as an opportunity to buy future dividends quite cheaply.
Best to stay away
from high volatility events like earnings releases if you're not planning on owning the stock for the long term.
The investment portfolios span from conservative low volatility to aggressive
high volatility market products.
Apart from general market risk, security risk, the lack of liquidity at times and
higher volatility associated with mid caps stocks could affect the fund and its performance.
In other markets,
such high volatility and wide spreads might indicate low liquidity, i.e. it is difficult to turn an asset into cash.
These types of funds can
experience higher volatility in market price compared to fixed income securities due to the underlying management of the portfolio and investment objective stated in a fund's prospectus.
It's why my selection methodology excludes funds with
very high volatility as well as funds that perform poorly in down markets.
Higher trading volumes are by no means a bad thing; however, increased trading activity does translate
into higher volatility, which means wider bid - ask spreads.
Essentially, the proposal creates an additional bucket of
high volatility loans with a lower capital hold requirement or capital weighting of 130 percent versus 150 percent.
After grabbing headlines during recent months for generating phenomenal returns, cryptocurrency prices have dipped substantially, with the market
showing high volatility.
Defensive low volatility strategies have shown to deliver superior returns with exposure to much lower risk over aggressive
high volatility strategies.
Compared to high - quality bonds, both dividend stocks and high - yield bonds have historically had
higher volatility overall and higher correlation to the overall stock market.
While I believe stocks will gradually work higher over the year, I think it will be in the context of
considerably higher volatility as the external policy environment has grown considerably more problematic.
The trader must take bigger positions in commodities with low volatility like gold, oil and smaller positions in commodities with
high volatility like copper, and agricultural products.
This scheme suits good for the investors who are looking for relatively higher & tax efficient returns who can
absorb higher volatility than debt oriented balanced funds.