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.
Carry trades blow up during
times of high volatility, which typically have high yield bonds or countries seeming to be more risky than usual.
For proof
of the high volatility of the headline indicator, note that the average absolute monthly change across this data series is 7.7.
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.
Nevertheless, it is a shot across the bows that we are entering into a new regime
of higher volatility as the cycle matures and global central banks turn the corner.
The debut of the first futures contract on an established exchange was relatively orderly, in contrast to
expectations of high volatility and traders short selling, or betting against, bitcoin.
The problem is that the «power hours» are a relatively small time
frame of high volatility during the North American session.
So it's a good idea if you can develop a portfolio that contains a
mix of high volatility and low volatility stocks.
Indeed one could argue that the low volatility anomaly is better described as the high volatility anomaly because of the historically poor
performance of high volatility equities.
I have found that one secret of successful investing is to avoid mutual funds and ETFs that have a track
record of high volatility.
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.
Values may fluctuate significantly in
times of high volatility or market / economic uncertainty; such swings are even more significant if your positions are leveraged and may also adversely affect your position.
There is a general (and correct) perception that stocks generate higher long term returns than bonds at a
cost of higher volatility.
The idea is that this tendency leads to a preference for lottery - like stocks with a small chance of a very high payoff, and this preference, in turn, drives up the prices
of high volatility stocks disproportionately, suggesting future underperformance.
The danger is that the multi-trillion-dollar short volatility trade, in all its forms, will contribute to a violent feedback
loop of higher volatility resulting in a hyper - crash.
While we remain focused on long - term business fundamentals as we evaluate potential investments, we don't mind taking
advantage of higher volatility to increase exposure to high - quality businesses at more attractive prices.
Interestingly, even though these
kinds of high volatility events can occur with some warning, many online brokerages continue to suffer slowdowns or outages because of the trading volume.
«When we look at the world, there's plenty of things to worry about, so we would anticipate there could be
episodes of higher volatility in the second half or even next year,» cautions Bruce Cooper, chief investment officer at TD Asset Management.
Although currently not backed by any government, cryptocurrencies are very different from fiat currencies, the values of which are inflated due to the constant money supply provided by central banks — compared to a specific number of bitcoin in circulation that is fervently supported by individuals and traders, in
spite of its high volatility and risks associated with hacking.
Some of these phenomena are similar across equities and fixed income: many investors are averse to leverage and therefore gravitate to riskier stocks in their search for high returns, which can lead to
over-buying of higher volatility stocks.
The top quintile of low volatility stocks delivered average monthly excess returns of.52, whereas the top
quintile of high volatility stocks delivered excess returns of.17, a 300 % difference.
Even in periods
of high volatility like 2001 and 2008 when Wall Street argues that professional stock - pickers actually earn their keep, most fund managers did not beat their benchmark.
WASHINGTON (Reuters)- Liquidity in the ultra-deep U.S. Treasury market suffered during the period
of high volatility between May and early July, after the U.S. Federal Reserve began talking about scaling back asset purchases, according to a Fed poll released on Thursday.
Over the years, there have been numerous cases of price fluctuation in the cryptocurrency market, made possible
because of the high volatility of cryptocurrencies.
Gold, however, could provide substantial backing to Bitcoin in the conventional markets, by eliminating
risks of high volatility and making it easy to cash out of the cryptocurrency.
We believe that active managers are positioned well to continue to take
advantage of the higher volatility that is likely here to stay and should benefit as investors put a premium on quality and valuation.
The sample total return chart above shows that since mid-2003 the emerging market equities provided a much greater return than that of the developed market or domestic ones, but at the
expense of higher volatility.
Phrases with «of high volatility»