Gold, however, could provide substantial backing to Bitcoin in the conventional markets, by eliminating
risks of high volatility and making it easy to cash out of the cryptocurrency.
«The challenging thing for investors is we're in this environment of muted returns, but it's accompanied by
the risk of higher volatility,» Cooper says.
Not exact matches
«
Volatility impacts our industry tremendously, because we are in such a
high -
risk, low - margin line
of work,» says Palmisano.
«This is typical
of a late cycle expansion which is another reason why multiples will be lower as
higher volatility typically demands a
higher equity
risk premium.
High - beta stocks are simply the shares
of companies whose stocks trade with above - average
volatility — and like the twin peaks
of a two - humped financial camel, these stocks carry both above - average
risk and, potentially, above - average reward.
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.
While Syria and the Middle East represent potential
high risk events, investors should remember that the
volatility that we're seeing is not unusual, says Patrick Chovanec
of Silvercrest Asset Management.
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.
High yield / non-investment-grade bonds involve greater price
volatility and
risk of default than investment - grade bonds.
Desai said that
high - yield bonds also mean
high risk, and pointed to the
volatility of high - yield energy bonds, especially in the past year.
With market
volatility hitting multi-decade lows, junk bond yields also at record lows, the median price / revenue ratio
of S&P 500 constituents at a record
high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the potential for an abrupt «air pocket» in the prices
of risky assets that could attend even a modest upward shift in
risk premiums.
As a result
of higher exchange rate
volatility, both during the crisis and subsequently, market participants and policymakers became keenly aware
of the need for better exchange rate
risk management.
The investments are subject to the
volatility of the financial markets, including that
of equity and fixed income investments in the U.S. and abroad, and may be subject to
risks associated with investing in
high - yield, small - cap, and foreign securities.
* 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.
Among them are factors I've discussed at length elsewhere — a weaker U.S. dollar, a steadily flattening yield curve, heightened market
volatility, overvalued U.S. stocks, expectations
of higher inflation, trade war jitters, geopolitical
risks and more.
The recent burst
of volatility has been unnerving, but it is important to remember that the macro environment
of synchronized economic growth and muted macro
risks remains solid, although some are concerned about potential inflation and
higher interest rates.
Indeed, once our estimated market return /
risk profile is strictly negative (as it is at present), the negative implications for the S&P 500 aren't affected by the position
of the market relative to that average, except that the market tends to experience
higher volatility once the market breaks that average.
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.
These
risks and uncertainties include food safety and food - borne illness concerns; litigation; unfavorable publicity; federal, state and local regulation
of our business including health care reform, labor and insurance costs; technology failures; failure to execute a business continuity plan following a disaster; health concerns including virus outbreaks; the intensely competitive nature
of the restaurant industry; factors impacting our ability to drive sales growth; the impact
of indebtedness we incurred in the RARE acquisition; our plans to expand our newer brands like Bahama Breeze and Seasons 52; our ability to successfully integrate Eddie V's restaurant operations; a lack
of suitable new restaurant locations;
higher - than - anticipated costs to open, close or remodel restaurants; increased advertising and marketing costs; a failure to develop and recruit effective leaders; the price and availability
of key food products and utilities; shortages or interruptions in the delivery
of food and other products;
volatility in the market value
of derivatives; general macroeconomic factors, including unemployment and interest rates; disruptions in the financial markets;
risk of doing business with franchisees and vendors in foreign markets; failure to protect our service marks or other intellectual property; a possible impairment in the carrying value
of our goodwill or other intangible assets; a failure
of our internal controls over financial reporting or changes in accounting standards; and other factors and uncertainties discussed from time to time in reports filed by Darden with the Securities and Exchange Commission.
The MOVE index suggested that US Treasury
volatility was expected to be very low, while the flat swaption skew for the 10 - year Treasury note denoted a low demand to hedge
higher interest rate
risks, even on the eve
of the inception
of the Fed's balance sheet normalization (Graph 9, right - hand panel).
Risks of high yield securities include greater price
volatility, illiquidity and possibility
of default.
Assuming a slightly
higher volatility of 30 percent - about the
risk of many 401K portfolios, say the authors - the chance
of a negative return increases.
Equal - weight and
volatility - weighted allocations are two common factor allocation frameworks
Risk - return ratios are not
higher with
volatility - weighted allocations Different reasons can explain the superiority
of equal - weight allocations INTRODUCTION In July we published a research report «Factors
It presumes that you are capable
of doing the necessary research and due diligence to select individual bonds; that you have a significant
risk appetite; that you are willing to incur significant price
volatility; and that you are comfortable with the
high likelihood
of owning at least some bonds which will default.
Bitcoin
volatility is very
high, but the
volatility captures all
of the
risk.»
Stronger - than - expected earnings growth
of 18 % for the S&P 500 have helped stocks move
higher, but potential causes
of volatility, including additional tariff proposals and rising interest rates, continue to be headline
risks.
But fatigue, in the form
of rising policy
risks and extended valuations, will drive greater
volatility, including a
higher likelihood
of a short - term market correction this year.
The investor should be aware
of the possible
higher level
of volatility, and increased
risk of default.
They entail significant
risks that can include losses due to leveraging or other speculative investment practices, lack
of liquidity,
volatility of returns, restrictions on transferring interests in a fund, potential lack
of diversification, absence and / or delay
of information regarding valuations and pricing, complex tax structures and delays in tax reporting, less regulation and
higher fees than mutual funds.
High yield bonds (bonds rated below investment grade) may have speculative characteristics and present significant
risks beyond those
of other securities, including greater credit
risk, price
volatility, and limited liquidity in the secondary market.
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.
This is due to, among other factors, the potential
high risk and
volatility of virtual currency products and the fact that virtual currency remains an experimental concept that is not presently regulated or backed by any central bank worldwide and has no tangible intrinsic value.
In this paper, Yang and his colleagues show that selling price data increases
volatility and increases the cost
of capital (which typically indicates that investments are
higher risk).
Investments in
high - yield («junk») bonds involve greater
risk of price
volatility, illiquidity, and default than
higher - rated debt securities.
High Risk — Income (H / INC) Medium to higher risk equities of companies that are structured with a focus on providing a meaningful dividend but may face less predictable earnings (or losses), more leveraged balance sheets, rapidly changing market dynamics, financial and competitive issues, higher price volatility (beta), and potential risk of princi
Risk — Income (H / INC) Medium to
higher risk equities of companies that are structured with a focus on providing a meaningful dividend but may face less predictable earnings (or losses), more leveraged balance sheets, rapidly changing market dynamics, financial and competitive issues, higher price volatility (beta), and potential risk of princi
risk equities
of companies that are structured with a focus on providing a meaningful dividend but may face less predictable earnings (or losses), more leveraged balance sheets, rapidly changing market dynamics, financial and competitive issues,
higher price
volatility (beta), and potential
risk of princi
risk of principal.
We see central banks nearing the limits
of extraordinary monetary easing, low returns across most asset classes as well as
higher equity and bond
volatility amid looming political
risks and Federal Reserve (Fed) tightening.
Investors who have a longer time horizon and are willing to embrace more
risk or
volatility in their portfolio in exchange for the possibility
of a
higher return would select a fund with a
higher equity holding — say LS80 or even LS100.
High credit
risk and history
of significant price
volatility, especially relative to
higher - quality bonds.
We see
higher volatility ahead, given the
risk of a British exit from the European Union, elevated U.S. valuations and the potential for a Federal Reserve rate increase in 2016.
On the one hand, declining bond market activity and the persistence
of low -
risk arbitrage opportunities imply liquidity is impaired, while, on the other, low
volatility and
high demand for risky assets suggest that liquidity is alive and well.
NOTE:
High - yield bonds are subject to additional
risks, such as increased
risk of default and greater
volatility, because
of the lower credit quality
of the issues.
This
volatility is likely to lead to a situation in which companies with a
high level
of risk meet the threshold conditions for inclusion in indices solely as a result
of exceptional trading, even before they have any business activity whose results can be evaluated.»
Volatility: Portfolio exposed to a
higher level
of market
risk in the pursuit
of potentially better rates
of return.
This way the
volatility risk is very
high in the case
of the forex trading compared that with the binary options trading.
This type
of environment is a
high risk environment for MOF intervention, but where
volatility is mainly concentrated in the GBP (see graphic) not yen, intervening in USDJPY might not be so useful.
They test this strategy on combinations
of seven indexes comprising a spectrum
of risk (listed lowest to
highest): BofA Merrill Lynch 5 - 7 Year Treasury Index (Treasuries); CBOE S&P 500 Buy - Write Index (BuyWrite); S&P 500 Low
Volatility Index (Low
Volatility); S&P 500 Index (SP500); Russell 2000 Index (R2000); Morgan Stanley Cyclicals Index (Cyclicals); and, S&P 500
High Beta Index (
High Beta).
CFTC spokeswoman Erica Elliott Richardson said that Giancarlo has been «clear that market participants should take note that the relatively nascent underlying cash markets and exchanges for bitcoin remain largely unregulated markets over which the CFTC has limited statutory authority, and that investors should be aware
of the potentially
high level
of volatility and
risk in trading these contracts.»
Even if the industry offers a bright future, the downsides
of working in biotech comes from «the
volatility of the industry, which makes it
high risk,» points out Jensen.
In most instances
of higher volatility, gold provides a hedge against not only equity
risk but credit as well.
The above historical performance figures from Morningstar indicate that the fund had a
higher volatility (expressed as a standard deviation
of returns) and underperformed the S&P 500 ® index, its best - fit benchmark, on a
risk - adjusted basis (Sharpe Ratio) in both the three - and five - year trailing periods.