Well, there was
no higher volatility periods than during the financial crisis.
Not exact matches
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.
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 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.
Periods of low
volatility also do not imply that
higher volatility is imminent.
As a result, it is now clear that the U.S. is in the latter stages of the multi-year credit cycle, a
period when rising corporate leverage negatively affects returns to corporate debt as investors demand
higher risk premiums to compensate for the greater
volatility created by increased leverage.
Higher volatility may help some active managers, but investors will need to see long
periods of outperformance before reconsidering their affinity for passive investments.
Additionally, right before a stock breaks out and rockets
higher, there is typically a
period of
volatility contraction and declining volume within the base of consolidation (learn about basing and consolidation patterns here).
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 bottom line: While
higher volatility is here for the foreseeable future, the selloff has created a number of potential opportunities for investors with longer - term holding
periods.
Stocks have historically had
higher potential for growth, and holding them for longer time
periods can help to smooth out
volatility.
Even with low interest rates, bonds and preferred shares also protect the portfolio during
periods of
higher equity
volatility.
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.
* Trading in Cryptocurrency CFDs involves a
high risk of loss of funds over a short
period of time due to the extreme
volatility surrounding cryptocurrencies.
After a long
period of much lower than average
volatility (in 2017, the S&P 500 hit 64 record
highs, with only four single - day declines of more than 1 %), this has been surprising for many investors.
During
periods of
high volatility some investors might be tempted to take a look at products that are directly or indirectly tied to
volatility.
For instance, a big special dividend financed by debt would still leave shareholders with a
period of
high leverage and potential earnings
volatility before they have as much in their pockets as the buyout price.
ECB President Draghi has appeared quite relaxed about the recent spike in yields, arguing that
higher volatility is to be expected during
periods of ultra-low interest rates.
High volatility means something might be way up or way down in a
period.
The first quarter of 2018 has seen many cryptocurrencies weather a
period of intense
volatility with an all - time market cap
high of $ 814 billion being recorded in January.
Also, in general, keep in mind that it often makes sense to sell options in
periods of
high volatility, when option prices are elevated, and buy options in
periods of low
volatility, when options are cheaper.
The growth fund has beaten dividends in every
period and
volatility is only slightly
higher.
I highlighted the prospects of a change in market regime from one of ultra low
volatility to a
period of
higher volatility.
A diversified portfolio may not make the
highest returns during a
period of strong optimism but, over the long term, diversified allocations can mitigate some of the
volatility that a more concentrated portfolio typically reflects.
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.
Over the
period that includes the commodity supercycle dating back to 1995, the efficient frontier would have arrived at a very different conclusion: potentially much
higher allocations to Canadian stocks at
higher levels of
volatility.
After an extended
period of record -
high stock prices and record - low
volatility, the current dip offers an opportunity to:
Long - term bonds saw the worst returns during these
periods, which makes sense given their
higher duration (thus
higher volatility and magnitude of loss).
It's easy to think that markets have been on a steady grind
higher during this
period of low
volatility, but when we look more closely, we find that there have been distinct, dynamic and evolving trends in place.
That's extraordinary in a super choppy market, but it is exactly the kind of strategy that thrives during
periods of
high volatility.
Problem is, it's hard to invest when
volatility is this
high, so you can either wait until things calm down, or you can work into positions over a long
period of time.
They have outperformed the broader market during
high -
volatility periods, according to BlackRock research.
To illustrate this, we'll compare some summary statistics about the S&P over time as compared to during
periods of
high excess
volatility.
Options traders can concentrate on net buying strategies during
periods of low
volatility and shift to net selling strategies during
periods of
high volatility.
It is often difficult to find a technical backdrop during
periods of extremely
high volatility, but in the case of the Netflix chart, the Fibonacci retracement levels provide some context.
Bitcoin Went From
Periods of
High Volatility in 2016 to Consistenly
High Volatility in 2017 Casey Pender and Max Gulker
Over the preceding twenty - year
period, furniture expenditure averaged growth of 1.1 per cent each year (with
high volatility), which is lower than inflation and lower than average school and resource budgets.
The above historical performance figures from Morningstar indicate that the fund had a
higher volatility (expressed as a standard deviation of returns) and underperformed the S&P 500 ® index, its best - fit benchmark, on a risk - adjusted basis (Sharpe Ratio) in both the three - and five - year trailing
periods.
Volatility cycles between
high and low
periods, just as all market cycles undergo some degree of change either through external stimuli or evolution.
In that
period, the large - cap value ETF handily outperformed its growth counterpart, albeit with a slightly
higher standard deviation (a measure of
volatility of returns).
Try to avoid
high -
volatility periods to prevent a break - out of the trading range.
Yet, while duration is
higher by one year, the maximum monthly
volatility is about the same; neither exceeds 2.5 % for the
period measured, a
period that includes some of the most volatile bond market conditions since the 1970s.
It's also important to have a good command of your platform, as markets tend to move faster during
periods of
high volatility.
This example is best employed during
periods of
high volatility and just before the break of important news announcements.
The back - tested results of the 17 - year
period ending Feb. 28, 2017, show that the S&P U.S.
High Yield Low Volatility Corporate Bond Index may offer an intersection that bridges the volatility gap between the high - yield and investment - grade bond sectors, with increased return efficie
High Yield Low
Volatility Corporate Bond Index may offer an intersection that bridges the volatility gap between the high - yield and investment - grade bond sectors, with increased return e
Volatility Corporate Bond Index may offer an intersection that bridges the
volatility gap between the high - yield and investment - grade bond sectors, with increased return e
volatility gap between the
high - yield and investment - grade bond sectors, with increased return efficie
high - yield and investment - grade bond sectors, with increased return efficiency.
Canadian stocks (as measured by the S&P / TSX 60 Index), on the other hand, had returned 3.72 percent and 8.45 percent respectively during the same time
periods albeit at a much
higher volatility including a significant stock market crash.
I.e., for any profitable strategy, odds are that it will show
higher returns during
periods of
high volatility, so I'd be more interested in something like a Sharpe Ratio per trade when comparing subsets of trades.
Periods of low
volatility often coincide with
higher levels of valuation, and that sort of low economic variability can help to generate stock market bubbles.
Over long
periods, in most markets around the world, stocks with the
highest volatility have -LSB-...]