As well, see «Stock Market Returns & Volatility» for a surprisingly strong relationship between the level
of volatility in the stock market and its direction.
On Wall Street, humans are a commodity being replaced by machines, and yet four years
of volatility in the stock market can be covered in a month of pricing movements in the cryptocurrency markets.
Not exact matches
Volatility has been the byword for the Chinese
stock market in the recent past, not least because the government has a habit
of intervening
in the form
of lockdowns and corporate actions whenever the Shanghai index dives.
In a falling
market, you want the large - cap dividendpaying
stock that has low beta (a measure
of volatility), he says.
Sudden changes
in volatility and monetary policy could spark an «interesting» period for
stock markets in the next couple
of years, the CEO
of Barclays warned Thursday.
The findings correlate with an uneven year for business
in 2015, due to
stock market volatility in the third quarter, which ended a long bull run
in the wake
of weakening global economies and a devaluing
of China's currency.
David Rubenstein, co-founder and co-executive chairman
of The Carlyle Group, speaks about recent
volatility in stock markets.
The threat
of escalation
in Syria and the trade dispute between Beijing and Washington have dampened
stock market confidence, while gold has traditionally been a safe asset for investors
in times
of volatility.
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.
In periods
of broad
market decline and rising
volatility, some Dow consumer
stocks can be safety plays, according to CNBC analysis using Kensho.
Although value
stocks typically hold up better
in times
of volatility, this bull
market has been exceptionally smooth — up until the last year, that is — and favored high - growth momentum
stocks, which tend to have more expensive valuations.
Those experts include Marko Kolanovic, JPMorgan's global head
of quantitative and derivatives strategy, who has
in the past said the shorting
of volatility reminded him
of the conditions leading up to the 1987
stock market crash.
You could say that 2018 is still a young year and it's way too early to judge things, which is true, but the level
of volatility in both
stocks and bonds during February is making this year feel like we've lived through two full years already, and I think what the
markets are signaling is more likely to be a sea change than a blip.
More from Investor Toolkit: Warren Buffett explains how to invest
in stocks when inflation hits
markets How investors can take advantage
of market volatility Financial advisors are missing one key technology disruption
The most recent such crisis, and the continued
volatility of the
markets, means
stock in the views
of NYU professor Nouriel (Dr. Doom) Roubini has never been higher.
The
market volatility index, otherwise known as the VIX and even better known as the fear gauge — a measure
of the expected
volatility of U.S.
stocks — has surged to the highest level
in more than two years.
Citigroup said the sharp rise
in stock trading revenue was a byproduct
of increased
market volatility in equity
markets.
The
volatility in the
stock market, especially the Nasdaq, is a classic indicator
of the transitionary nature
of the times.
The determination
of Albertsons» majority owner, private equity firm Cerberus Capital Management LP, to carry out the IPO despite
volatility in the
stock markets underscores its confidence that it can fetch a high valuation for Albertsons.
Many investors are nervous about investing
in the
stock market because
of the recent
volatility.
The
stock market opened way down, continuing last Friday's selloff, though it has climbed back since the open — implying the return
of volatility — as skittish investors continue to fear the sequence I describe
in this AM's WaPo: tight labor
market, wage pressures, higher interest rates, inflation, lower profit margins.
«
Market volatility should be a reminder for you to review your investments regularly and make sure you consider an investing strategy with exposure to different areas
of the
markets — U.S. small and large caps, international
stocks, investment - grade bonds — to help match the overall risk
in your portfolio to your personality and goals,» says Dowd.
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.&r
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.&r
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 first
Stock Connect deal added a new element
of uncertainty to the
market, said Rui Huo, a researcher at RMIT University
in Melbourne, Australia, who is a co-author
of a recent paper on the effect
of Stock Connect on
volatility.
The stochastic discount factor is time varying and by just the right amount to explain the variance
in returns (and the high
volatility of the
stock market).
Although there may be hundreds
of stocks with nice - looking chart patterns
in a typical bull
market, getting
in the habit
of checking for ample
volatility (Price / ATR Ratio) and liquidity is an excellent way to further narrow down your arsenal
of potential
stock trades to consider.
If
markets pick back up venture funding will return as it was before the 3 - day, 10 % correction but if the VIX goes up (a measure
of expected
volatility in the
stock market) then expect rounds to take longer.
It will not maximize gains
in rising
stock markets, but it can capture a substantial portion
of the gains over the longer term, with less
volatility than just investing
in stocks.
The sudden return
of volatility to global
stock markets has created buying opportunities
in large - cap tech
stocks as the sector's investors look to rebound from...
Those investors got a reminder
of the potential
volatility in recent weeks, when emerging -
market stock funds lost just as much as S&P 500 index funds during the sell - off
in late January and early February, even though the trigger for the
market's fear was an economic report out
of the United States.
2018 Outlook: «A synchronized improvement
in global economic and financial
market conditions means fundamentals are likely to play a larger role
in driving individual
stock prices, while geopolitical risks and investor complacency leave
markets vulnerable to bouts
of volatility that may present us with attractive investment entry points.»
To the extent that there is informational content
in the price behavior
of stocks, however, we are more likely to see it expressed
in the
volatility of the
markets than
in its actual price level.
Because
of the yen's propensity to move
in the opposite direction
of the domestic
stock market, unhedged exposure to the country may reduce
volatility.
Beyond the absurdity
of basing investment decisions on a temporary weather event, these recommendations can be harmful to investors because they involve some
stocks with very shaky fundamentals at a time when
market volatility makes investing
in strong businesses all the more important.
Volatility roared into global
markets in February after a prolonged calm
in 2017, roiling
stocks, bonds, currencies and commodities, and remained elevated through the end
of March.
Important factors that may affect the Company's business and operations and that may cause actual results to differ materially from those
in the forward - looking statements include, but are not limited to, increased competition; the Company's ability to maintain, extend and expand its reputation and brand image; the Company's ability to differentiate its products from other brands; the consolidation
of retail customers; the Company's ability to predict, identify and interpret changes
in consumer preferences and demand; the Company's ability to drive revenue growth
in its key product categories, increase its
market share, or add products; an impairment
of the carrying value
of goodwill or other indefinite - lived intangible assets;
volatility in commodity, energy and other input costs; changes
in the Company's management team or other key personnel; the Company's inability to realize the anticipated benefits from the Company's cost savings initiatives; changes
in relationships with significant customers and suppliers; execution
of the Company's international expansion strategy; changes
in laws and regulations; legal claims or other regulatory enforcement actions; product recalls or product liability claims; unanticipated business disruptions; failure to successfully integrate the Company; the Company's ability to complete or realize the benefits from potential and completed acquisitions, alliances, divestitures or joint ventures; economic and political conditions
in the nations
in which the Company operates; the
volatility of capital
markets; increased pension, labor and people - related expenses;
volatility in the
market value
of all or a portion
of the derivatives that the Company uses; exchange rate fluctuations; disruptions
in information technology networks and systems; the Company's inability to protect intellectual property rights; impacts
of natural events
in the locations
in which the Company or its customers, suppliers or regulators operate; the Company's indebtedness and ability to pay such indebtedness; the Company's dividend payments on its Series A Preferred
Stock; tax law changes or interpretations; pricing actions; and other factors.
Furthermore, it seeks to achieve these returns with a lower level
of volatility than the broader Australian
stock market over the medium to long term
in order to smooth returns for investors.
The rather abrupt rise
in interest rates this year has probably also played a part, and is certainly responsible for some
of the increase
in the
stock market's
volatility.
Though most
of the damage to the
market didn't occur
in the second quarter, thus far, the recent
stock market volatility doesn't seem to be having a noteworthy impact on China's economic fundamentals.
Investment
volatility in these types
of private real estate investments is limited to changes
in net asset value and interest rate unlike public REITs, which are also subject to
stock market volatility, which moves independently
of the other two factors.
The threat
of inflation, along with the potential for the Federal Reserve to raise interest rates to combat it, has been at least part
of the recent
volatility in the
stock market.
But
in a flash, he lost $ 2.5 million
of their retirement savings by using it to bet on the
volatility of U.S.
stock markets.
Outside
of stock market levels, there has been a notable increase
in volatility.
The latest Wells Fargo / Gallup Investor and Retirement Optimism Index found that more than half
of investors weren't especially concerned about recent
volatility in the
stock market, while 60 % said they still believe it's a good time to invest
in the financial
markets.
But this unexpectedly sanguine report was a reminder that the beginning
of a Fed tightening cycle could be near, and the subsequent selloff is a clear sign that the U.S.
market is vulnerable to higher
volatility in the near term, even though we like the long - term prospects
of stocks.
Important factors that may affect the Company's business and operations and that may cause actual results to differ materially from those
in the forward - looking statements include, but are not limited to, operating
in a highly competitive industry; changes
in the retail landscape or the loss
of key retail customers; the Company's ability to maintain, extend and expand its reputation and brand image; the impacts
of the Company's international operations; the Company's ability to leverage its brand value; the Company's ability to predict, identify and interpret changes
in consumer preferences and demand; the Company's ability to drive revenue growth
in its key product categories, increase its
market share, or add products; an impairment
of the carrying value
of goodwill or other indefinite - lived intangible assets;
volatility in commodity, energy and other input costs; changes
in the Company's management team or other key personnel; the Company's ability to realize the anticipated benefits from its cost savings initiatives; changes
in relationships with significant customers and suppliers; the execution
of the Company's international expansion strategy; tax law changes or interpretations; legal claims or other regulatory enforcement actions; product recalls or product liability claims; unanticipated business disruptions; the Company's ability to complete or realize the benefits from potential and completed acquisitions, alliances, divestitures or joint ventures; economic and political conditions
in the United States and
in various other nations
in which we operate; the
volatility of capital
markets; increased pension, labor and people - related expenses;
volatility in the
market value
of all or a portion
of the derivatives we use; exchange rate fluctuations; risks associated with information technology and systems, including service interruptions, misappropriation
of data or breaches
of security; the Company's ability to protect intellectual property rights; impacts
of natural events
in the locations
in which we or the Company's customers, suppliers or regulators operate; the Company's indebtedness and ability to pay such indebtedness; the Company's ownership structure; the impact
of future sales
of its common
stock in the public
markets; the Company's ability to continue to pay a regular dividend; changes
in laws and regulations; restatements
of the Company's consolidated financial statements; and other factors.
This absolutely could go sidewise: Zillow is already being hammered
in the
stock market — investors aren't generally fans
of high - margin companies entering low - margin businesses, with huge amounts
of volatility risk to boot.
US
Stock market volatility returned
in the 1st quarter
of 2018 with a vengeance.
Before the end
of April, when the
market started its gut - wrenching descent, «the combination
of return generation and risk diversification was part
of a broader virtuous circle for fixed income, which also included significant inflows to the asset class and direct support from central banks,» El - Erian writes at the start
of his viewpoint, noting that
in addition to delivering solid returns with lower
volatility relative to
stocks, the inclusion
of fixed income
in diversified asset allocations also helped to reduce overall portfolio risk.
«I'm proud
of our team's results and pleased with our
stock price increase considering the
volatility in the
stock market,» said a statement from Publix CEO and president Todd Jones.