Sentences with phrase «periods of high volatility»

During these periods of high volatility it is important to remind oneself that financial markets are social structures.

The greatest number of expensive goods is purchased during the periods of high volatility, says Leeds:

During periods of high volatility, small cap value managers have produced alpha of 1.4 versus periods of low volatility when they have produced alpha of -0.71.

During periods of high volatility, the Portfolio Manager will write (or sell) a call option against some of its positions in order to hedge downside risk, while generating an income stream from the sale of options.

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.

And that endorsement might be strong 10 years from now, because the strategy did well during periods of high volatility.

It is still a high - risk system, in my opinion, with periods of high volatility and under - performance.

During periods of high volatility and market drawdowns, this system performed well, moving inversely to the S&P 500.

This is a trend - following strategy as periods of high volatility usually coincide with bad returns.

In reality, this is incredibly challenging given the difficulty of forecasting these episodic periods of high volatility and constraints around expanding balance sheets in order to exploit market weakness,» it says.

In periods of high volatility, they behave more closely to stocks.

The J curve illustrates why investing in periods of high volatility has been compared to «catching a falling knife.»

Thereafter, the advantage goes increasingly to investors who bought during periods of high volatility.

This modification could help reduce drawdowns during periods of high volatility and / or negative market conditions (see 2008 - 2009), but it could also reduce total returns by allocating to cash in lieu of an asset class.

Note brokers often apply margin restrictions on certain securities during periods of high volatility and short interest.

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.

This example is best employed during periods of high volatility and just before the break of important news announcements.

It's also important to have a good command of your platform, as markets tend to move faster during periods of high volatility.

Bitcoin Went From Periods of High Volatility in 2016 to Consistenly High Volatility in 2017 Casey Pender and Max Gulker

Options traders can concentrate on net buying strategies during periods of low volatility and shift to net selling strategies during periods of high volatility.

That's extraordinary in a super choppy market, but it is exactly the kind of strategy that thrives during periods of high volatility.

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.

During periods of high volatility some investors might be tempted to take a look at products that are directly or indirectly tied to volatility.

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.

I highlighted the prospects of a change in market regime from one of ultra low volatility to a period of higher volatility.

Like stocks and commodities, cryptocurrencies are highly speculative and risky assets, while investors always rush towards safe - haven assets such as gold and bonds during the period of high volatility.

However, after a period of high volatility, I expect a period of low volatility.

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.

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.

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.»

* 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.

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.

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.

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.

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.

To illustrate this, we'll compare some summary statistics about the S&P over time as compared to during periods of high excess volatility.