Sentences with phrase «relative volatility of stocks»

Bonds offer fixed interest payments at regular intervals and can act as a hedge against the relative volatility of stocks, real estate, or precious metals.

Not exact matches

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.

In spite of the Chinese stock market's perceived relative unimportance, the Chinese authorities have pulled out all the stops to ensure that equity volatility does not spill over into the wider economy.

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.

The CNN Fear & Greed Index monitors seven market factors, including stock price momentum, stock price strength, stock price breadth, put and call options, junk bond demand, market volatility and safe haven demand, by calculating how far they have veered from their averages relative to how far they normally veer, on a scale of 0 to 100, with 0 indicating fear and 100 greed.

One of the great anomalies of investing: The historical long - term outperformance of certain smart beta or factor - based strategies relative to the broader equity market (think choosing stocks based on their valuations, momentum, low volatility or quality metrics such as profitability).

It measures a stock's relative volatility — that is, it shows how much the price of a particular stock jumps up and down compared with how much the stock market as a whole jumps up and down.

Vanguard Total Stock Index contains many, many mid - and even small - cap stocks that naturally increase the volatility of that fund as well as any portfolio relative to the S&P 500.

First, note how high Colgate's stock price was relative to True Worth ™ valuation at the beginning of calendar year 2000 which caused it to go sideways, not withstanding short bouts of volatility.

The line of thinking behind this criticism is that the additional volatility of small - cap stocks relative to large - cap stocks and value stocks relative to growth stocks is not sufficient to justify their much higher historical returns.

This can be seen in the chart below, which depicts the relationship between the excess monthly return of dividend - paying stocks (represented by the S&P 500 Low Volatility High Dividend Index relative to the S&P 500 Index) to the monthly change in the 10 - year Treasury yield.

The Ladies also look at timeliness (a prediction of how fast a stock's price will grow compared to other stocks - stocks are given a number of 1 to 5, with one being the highest and the best); safety (the volatility of a stock's price around its own long term trend); beta (the volatility of a stock's price relative to the total market) and upside - down ratios (the ratio between the projected potential gain per share divided by the risk of loss per share).

Still, by adding this third «factor» to our portfolio, we arrive at a destination that has for the past 88 years posted the same rate of return as the all - stock S&P 500 — and that with 20.5 % less relative volatility.

For example, some of these ETFs screen for companies with low prices relative to their fundamentals (value stocks), while others cover only small - cap stocks, those trending upwards in price (momentum stocks), or those with lower volatility.

On Wednesday, February 7, dollar value traded in U.S. - listed ETFs represented more than 35 % of the consolidated tape (compared with an average of 26 % in 2017).5 The rise in ETF turnover on both an absolute and relative basis to broad equities amid the significant market volatility implies investors and traders chose ETFs over single stocks.

After a period of relative calm in the markets, in recent days the increase in volatility in the stock market has resulted in renewed anxiety for many investors.

But I've been waiting for a little volatility (read: opportunity) in the market which would allow me to squeeze just a little extra cash out of my bank account for high - quality stock or two at what I felt would be an attractive long - term price relative to intrinsic value.