Sentences with phrase «requires liquid markets»

Or, a strategy that requires liquid markets does not so well in a time of deleveraging.

Not exact matches

We'll funnel the dividends into a liquid money market account, then sell stocks as required to keep Bucket 1 to our targeted level.

Stocks, bonds and many other investment vehicles on secondary markets you may think of are highly liquid but they still require that markets are open and then an additional 3 - 5 business days to settle the transaction and for funds to make their way to your bank account.

e.g. on a universe of all liquid stocks with pretty generous liquidity filters (price > $ 1, mcap > $ 100 million, on the market for at least 1 year, inflation - adjusted daily dollar volume in the last 63 days > $ 100,000), before friction, and hold for 5 days (no other sell rule), tested on all start dates Sept 2, 1997 forward to Aug 18, 2015 and then averaged CAGR, leaving an average of 3360 stocks in the universe to then test: a. 17.6 % cagr bottom 5 % of stocks left by bad 4 day return (requiring price > ma200 was slightly worse than this at 17.4 %; but requiring price < ma5 was better at 18.1 %) b. 16.0 % cagr bottom 5 % of stocks left by bad 5 day return c. 14.6 % cagr bottom 5 % by rsi (2) d. 14.7 % cagr for rsi (2) < 5 I have tested longer backtests on simpler liquidity filters (since my tests can't use all of the above filters on very long tests) and this still holds true: bad return in the last 4 or 5 days beats low rsi (2) for 1 week holds.

And they may be less liquid, require holding periods or have little secondary market for selling.

Sure, the market could take a dip and I may be able to buy the shares back at a reduced cost, but that would require keeping sizable liquid assets around and trying to time the market.

The required minimum will be specified as a percentage of the fund's net assets to be invested in «highly liquid investments» — meaning cash held by a fund and any investment that the fund reasonably believes is convertible into cash in current market conditions within three business days without significantly changing the market value of the investment.

To the extent a Fund sells securities short, it will provide collateral to the broker - dealer and (except in the case of short sales «against the box») will maintain additional asset coverage in the form of cash, U.S. government securities or other liquid securities with its custodian in a segregated account in an amount at least equal to the difference between the current market value of the securities sold short and any amounts required to be deposited as collateral with the selling broker.

With respect to futures contracts that are required to «cash settle,» however, a fund is permitted to set aside or earmark liquid assets in an amount equal to the fund's daily marked to market (net) obligation, if any, (in other words, the fund's daily net liability, if any) rather than the market value of the futures contracts.