Assuming oil prices stay in this narrow range, we believe there are some important implications of
lower oil price volatility for investors:
Not exact matches
Any commodities business comes with some
volatility — the
oil and gas business has had a tough couple of years amid
low energy
prices.
Oil - related revenue has dwindled since 2015 as a period of
low prices reduced interest from producers and consumers in financial instruments that offer protection against
price volatility, said Amrit Shahani, research director at Coalition.
Higher
oil prices would reinforce current market trends based on reflation: rising long - term bond yields and a shift out of perceived safer assets — bond proxies and
low -
volatility stocks — and into cyclical assets such as EM.
In recent times Venezuela as a sovereign country has been involved in sociopolitical problems and with a high
volatility in its
prices of raw material exports such as
oil, because of the
low prices...
Despite recent market
volatility and exposure to
low oil and commodity
prices, the countries growth won't be affected, says the bank.
With the loonie's recent slide,
oil prices at their
lowest in 12 years and China's stock market
volatility sending reverberations to our own, the news of Canada's economic decline is hard to ignore.
What's more, if you choose stocks that have a
low or inverse correlation with one another - an
oil producer and an airline, for example - you further reduce the
volatility in your portfolio, because the stocks react in different ways to the same events (a change in
oil prices, for instance).
Until late 2014, your portfolio probably enjoyed excellent returns and
low volatility as
oil prices and production increased.
«We want to make sure we buy long lead - life,
low decline - rate assets at attractive valuations, with good balance sheets, in order to survive the short - term and very intense
volatility we're seeing in the
price of
oil,» McKinley said.
Why: In 2015,
low -
volatility strategies more than lived up to expectations, particularly for Canadian equities where the tumultuous loonie and falling
oil prices have added to market
volatility.
An extended period of
low prices for
oil, coal and metal is causing distress and
volatility in the energy markets.
Leasing volume has been down recently because of stock market
volatility and concerns over the economic slowdown in China and
low oil prices, notes Julia Georgules, vice president of office research for JLL.