Historical market data shows the evidence for this relationship between risk and potential rewards: Since 1926, stocks have generated much higher compound annual returns than bonds — 10.0 % vs. 5.5 % — because stocks are
a more volatile investment.
Generally speaking,
the more volatile the investment and the longer the holding period, the more an investor's wealth is adversely impacted by volatility.
Decoupling bonds from their currency risk in Emerging Markets as well represents another favored strategy that flexible bond strategies can employ to help investors navigate
a more volatile investment environment in 2015.
Decoupling bonds from their currency risk in Emerging Markets as well represents another favored strategy that flexible bond strategies can employ to help investors navigate
a more volatile investment environment in 2015.
You may want to avoid
more volatile investments such as cyclical stocks, commodities and commodity stocks, growth stocks, and high - yield bonds.
If serious short - term losses would upset you enough to make you sell any stock you own, it might be good for you to avoid
more volatile investments.
The greater the percentage of stocks in your portfolio,
the more volatile your investments will be.
While government agency - backed RMBS were not immune to the negative credit risk implications, especially as the government agencies — Federal National Mortgage Association (FNMA or Fannie Me) and Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac)-- were placed under conservatorship by the U.S. government in 2008, «private label» RMBS without government backing were clearly
the more volatile investments, and they suffered losses in the underlying assets, as well as severe swings in market value.
The bigger point here, though, is that
the more volatile the investments you own, the bigger the gain that's required to recover from losses.
I get why you would prefer the security of bank accounts to putting your savings in
more volatile investments like stocks and bonds.
And some investors that are seeking stability forget that adding small amounts of
more volatile investments can actually reduce volatility.
Not exact matches
Buybacks, said Aguilar, are done because that's the way companies think they can get the best return on their
investment, so with a
more volatile stock market and harder access to credit, spending cash on long - term growth becomes the best option.
Paul Hickey of Bespoke
Investment Group discusses the market's
volatile week, bitcoin and
more with Courtney Reagan.
Why continue to let some «professional» broker take 1 % — 3 % off the top and then continue to listen to the endless excuses of how the market is
volatile, how everyone is losing money, or better yet to just sit tight so you can lose
more of your
investment.
While these funds have the potential to provide high income and total returns, they are riskier and
more volatile than their
investment grade counterparts.
Funds that concentrate
investments in specific industries, sectors, markets or asset classes may underperform or be
more volatile than other industries, sectors, markets or asset classes and than the general securities market.
Worldwide metal prices may fluctuate substantially over short periods of time, so the Fund's share price may be
more volatile than other types of
investments.
High yield fixed income securities are considered speculative, involve greater risk of default, and tend to be
more volatile than
investment grade fixed income securities.
An
investment in a limited partner interest in a private equity fund is
more illiquid and the returns on such
investment may be
more volatile than an
investment in securities for which there is a
more active and transparent market.
Because stocks are generally
more volatile than other types of assets, your
investment in a stock could be worth less if and when you decide to sell it.
Control asset companies produce
more volatile returns for their shareholders than do
investment companies not employing debt financing.
Compared to
investment companies that focus only on large capitalization companies, the Fund's NAV may be
more volatile because it also invests in medium and small capitalization companies.
A third observation from this analysis is that the ten - year forward real returns of
investments made at PEs between 12 and 17 had the biggest spread between minimum and maximum returns and were therefore
more volatile and less predictable.
These stocks could be amazing
investments even though they were
more volatile, lower quality businesses — if you were able to buy them right and sell them right.
Small - cap
investment should be part of a well - balanced portfolio, however, small cap stocks are definitely
more volatile than their large - cap siblings.
For instance, a recent Bloomberg report explains that tighter regulation and less risky
investment on behalf of Canadian banks yields returns that are less
volatile and
more consistent.
The fund may invest in derivatives, which are often
more volatile than other
investments and may magnify the Fund's gains or losses.
Investing in currency involves additional special risks such as credit, interest rate fluctuations, derivative
investment risk, and domestic and foreign inflation rates, which can be
volatile and may be less liquid than other securities and
more sensitive to the effect of varied economic conditions.
In this way, these start - up companies are actually far riskier
investments than their
more price -
volatile public counterparts.
● Foreign
investments may be
more volatile and less liquid than U.S.
investments and are subject to the risk of currency fluctuations and adverse political and economic developments.
Bitcoin is much
more volatile than a traditional
investment, but it has proven itself over the long term, recently reaching all - time highs.
High Yield bonds involved greater risk of default or downgrade and are
more volatile than
investment grade securities, due to the speculative nature of their
investments.
Investments that concentrate in specific industries, sectors, markets or asset classes may underperform or be
more volatile than other industries, sectors, markets or asset classes and than the general securities market.
Beta — A measurement of how risky an
investment is, with 1 being neutral, above 1 being
more volatile, and less than 1 being less
volatile.
Foreign
investments can be riskier and
more volatile than U.S.
investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions (e.g., «Brexit»).
Investments that concentrate in specific industries, sectors, markets or asset classes may underperform or be
more volatile than other industries, sectors, markets or asset classes and than the general securities market.
Complementing traditional
investments, Ross points out that real estate is less
volatile (unlike stocks, it's not marked to market every day); provides diversification with a favorable balance of risk versus return; is favorably taxed via capital gains tax treatment and interest deductibility; generates returns similar to the stock market and «often
more»; provides principal protection; a hedge against inflation and a pension - like «monthly coupon.»
Alternative
investments, including commodities, involve a higher degree of risk and can be
more volatile and less liquid than shares and bonds.
Over time these
volatile periods in the stock market's history have «evened» out to a real «average return» of 8 %, however, unless your
investment time frame is 50 or
more years, you can not rely on these skewed returns with any degree of certainty.
If you push
more of your portfolio into dividend - paying stocks, REITs, and MLPs, you will certainly earn
more, but these
investments are
more volatile, which can make you lose principal.
If you've got several decades before you need that money, your risk profile can be on the high side, allowing you to put your money in
more volatile, higher return
investments that can be corrected over time.
EM currencies are inherently
more volatile and subject to risk given they underlie jurisdictions that may be exposed to a less robust rule of law, poor institutions, political instability or corruption, low levels of
investment and innovation, lack of private property laws, and / or undeveloped debt and capital markets.
Stock
investments are therefore much
more volatile.
Aggressive portfolios hold
investments that are
more volatile than value or blue chip
investments.
Funds that concentrate
investments in specific industries, sectors, markets or asset classes may underperform or be
more volatile than other industries, sectors, markets or asset classes and than the general securities market.
Investments in real estate are generally
more protected and less
volatile than stocks.
High yield bonds are
more volatile than
investment grade securities, and they involve a greater risk of loss (including loss of principal) from missed payments, defaults or downgrades because of their speculative nature.
But I'd be wary of venturing, as some investors seeking higher yields do, into high - yield, or junk, bond funds, as they're generally
more volatile than
investment - grade funds and don't hold up as well in periods of economic and market stress.
Investments in real estate
investment trusts (REITS) involve special risks associated with an
investment in real estate, such as limited liquidity and interest rate risks, and may be
more volatile than other securities.
An
investment in the Gator Focus Fund is subject to special risks including but not limited to, small and mid cap companies securities risk which is subject to the potential for increased volatility as a result of investing in securities that are
more volatile compared to
investments in
more established companies.