Sentences with phrase «run portfolio volatility»

Not exact matches

The first is associated with a wide dispersion of short - run outcomes, or volatility, in a portfolio's value.

The long - run return from foreign - exchange hedging before costs arguably is zero, so a disciplined portfolio that rebalances can actually benefit from that greater volatility.

I personally prefer using unhedged positions because (a) It is cheaper (b) In the long run, currency effects will average out (c) The value of hedging is questionable when a basket of currencies are involved and (d) While currencies on their own have zero expected return over cash, adding them to a portfolio reduces volatility and offers diversification benefits.

If you have a higher tolerance for volatility, then you can see higher returns in the long run... as long as your portfolio is on the efficient frontier.

In response to some of the commenters above, a small amount of bonds in your portfolio (10 to 20 %) can reduce the volatility of your investment without substantially reducing your returns in the long run.

However, by adopting a sector rotation strategy, you run the risk that your portfolio may experience increased volatility and may underperform the broader market indexes.

That increased value might not always be exactly recognized the market at all times (leading to the aforementioned volatility), but the price of your stocks (and thus the market value of your assets / portfolio) should increase over the long run.

He said: «Advisors who help their clients to re-adjust their portfolios today have the opportunity to help their clients retain potential for investment gains should the bull market run longer and still be well - positioned if market volatility continues and / or we see a pullback and price consolidation.

Who cares if volatility wrecks havoc to your portfolio over the short run — it doesn't make a difference because you're not thinking of selling within the next couple of years anyway.

In other words, if you can live with all the volatility, especially when your portfolio is on a big downswing, you could potentially come out a winner over the long run by just neglecting your portfolio, and not rebalancing at all.

Our Volatility Meter shows the historical returns of key asset classes and illustrates how diversification can affect a portfolio's volatility and returns over theVolatility Meter shows the historical returns of key asset classes and illustrates how diversification can affect a portfolio's volatility and returns over thevolatility and returns over the long run.