Sentences with phrase «price volatility makes»

Their high price volatility makes them especially suitable for speculating on interest rate movements.

High stock price volatility makes investors anxious and some people even become downright frightened.

Does higher short - term price volatility make a diversified portfolio of real capital assets a riskier choice for long - term wealth accumulation?

Not exact matches

This volatility makes it difficult to determine value as the price can fluctuate wildly within the course of a divorce.

After all, volatility prices are collapsing, making longer - dated wagers more appealing.

An above - average dividend yield (the MSCI Canada Energy Index is yielding an annualized dividend of 3.6 % versus 2.9 % on the overall MSCI Canada index, according to Bloomberg data as of July 31, 2017) and lower price volatility could make energy a more attractive sector for income - seeking investors in a low yield world.

Rapid demand growth; commodity price volatility; the influence of a broad range of global conditions on wages: all these factors can trigger large changes in relative prices, and this makes the job of capturing underlying inflation harder.

Should they become widely available as intended, they could increase the volatility of home prices, making prices go down faster or go up faster than they otherwise would, Weiss said.

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.»

In actuality, while the skill set necessary to make intelligent decisions can take years to acquire, the core matter is straightforward: Buy ownership of good businesses (stocks) or loan money to good credits (bonds), paying a price sufficient to reasonably assure you of a satisfactory return even if things don't work out particularly well (a margin of safety), and then give yourself a long enough stretch of time (at an absolute minimum, five years) to ride out the volatility.

a bond where no periodic interest payments are made; the investor purchases the bond at a discounted price and receives one payment at maturity that usually includes interest; they have higher price volatility than coupon bonds as a result of interest rate changes

That, and the currency's intense volatility, make it challenging for investors to forecast a price.

Although bonds generally present less short - term risk and volatility than stocks, bonds do contain interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments.

However, my personal favorite market to trade is the Forex market, mainly due to its deep liquidity which makes it easy to enter and exit the market, and also because the Forex market tends to have better trending conditions as well as more volatility which makes for better directional trading and allows price action trading to really shine.

Decreases in volatility may cause day traders to gravitate toward different stocks, or long - term price changes may make the stock too high or low to warrant day trading.

The volatility of commodity prices makes it challenging to understand the true business value of companies in extractive industries.

You may want to consider making subtle adjustments at opportunistic price points to bring your asset allocation back in line to manageable volatility bands.

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.

This market may also have liquidity issues, meaning that it may be hard to find a buyer during a negative market event — which could lead to price volatility or make it hard to determine a fair price for one of these securities.

We have a very rigorous process when listing new assets to make sure they have enough liquidity to handle price volatility.

Extreme price volatility also makes bitcoin undesirable as a store of value.

Yet an argument can be made that what the Fed was really worried about is not the level of equity prices, but their volatility.

«Bitcoin's price volatility presents particular risk management challenges for CCPs, making it more difficult to close out a defaulting clearing member's exposures,» the firm wrote.

And we might be able to use that price volatility to make a fast gold trade!

The market earlier this year simply had made an enormous error by pricing in its expectations for a strong economic and inflationary environment that has frankly not appeared (Making Volatility our Friend: Trading the Kitchin Cycle, May 28, 2014 and Unsustainable Steel Premiums, Sept. 3, 2014).

But, many analysts think you should use a mixture of growth stocks with value stocks and other types in your portfolio, just to make sure you avoid the excess volatility (how much a stock's price goes up or down over a period of time) that comes with some growth stocks.

«We are convinced that «quant» funds», which have attracted hundreds of billions of dollars in the last few years and a significant portion of which use leverage, and whose models and various strategies are largely based on price action and correlations extracted from the reasonably - recent past when volatility has been low (largely of their own making), have contributed mightily to the illusion that market risk is low.

While natural gas is cleaner than coal, the volatility of the price of that fuel makes it risky for consumers, said Thibault.

Cryptocurrencies made another U-turn; prices are moving higher after a considerable downside volatility in January.

The measures involve working towards making the market work better to reduce price volatility, ensuring the best use of existing oil resources, accelerating a switch to alternative energy sources and further investment in alternative energy supplies.

This would help dampen house price volatility; the total tax burden on a property rises with the value of the property, pushing up the overall purchase price and making the property less attractive as an investment.

In Europe's market, price volatility discouraged companies from making long - term investments in reducing their environmental footprint, despite a steadily lowering carbon cap.

Taxes give clear, long - term price signals that make it easier for firms to make intelligent investments that will cut carbon emissions, whereas the price volatility of cap - and - trade systems impedes wise planning.

The advantages of using EMA are obvious, the weighted average which is chained to the most recent fluctuations in price takes into account the volatility of the recent trends so the investors are in a better position to make an informed decision.

The price volatility, however, has made using it as a currency trickier.

Preferred shares are extremely popular with taxable investors, because have little price volatility except when interest rates move (which makes them similar to corporate bonds), and because their distributions are eligible for the dividend tax credit.

Intraday trading is not about investment; it is about making quick profits as a result of volatility in the prices of the securities.

Market volatility makes stock prices of even good businesses rise and fall on their way up.

Dividends can help combat volatility — that's because dividend yield increases as the market price of a stock falls, making the stock more attractive

These are places of relatively low volatility and places where price is waiting for a fundamental reason to make a new high / low.

Let's say Cory's Tequila Corporation is worried about the volatility in the price of agave, the plant used to make tequila.

With breakout trades, the goal is to enter the market right when the price makes a breakout and then continue to ride the trade until volatility dies down.

In their March 2018 paper entitled «The Conservative Formula: Quantitative Investing Made Easy», Pim van Vliet and David Blitz propose a stock selection strategy based on low return volatility, high net payout yield and strong price momentum.

And yet, notwithstanding recent volatility, stock prices resist gravity, making investors scratch their heads about what keeps the stock market elevated.

Their price stability, predictable returns and resilience to stock market drops make them the perfect holding for retired — and about to retire — investors who can't afford losses or volatility...

Long - Term Outlook There will most likely be periods when investors» demand for low volatility stocks will drive prices up and reduce the return premium to a level that makes the strategy unattractive.

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.»

You can do a theoretical calculation on the price of the option and thus determine the price of the underlying, but since time affects the option price along with volatility, it makes it very difficult to determine.

Looked at another way, say the price of company A stock drops 50 % in the short - term due to unrelated bad news about a competitor, company B, with no change in the underlying fundamentals of company A. Does this make company A less attractive (due to volatility) or more — as you can buy the same now for half price?

The stock was only a few days into its decline when I made the previous trade and volatility allowed me to sell at the same price.