«Another important point:
the significant volatility of the market is often perceived negatively by many investors.
Not exact matches
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.
Bonds rated below investment grade may have speculative characteristics and present
significant risks beyond those
of other securities, including greater credit risk and price
volatility in the secondary
market.
News
of the heist on Friday triggered
significant volatility in the price
of XEM and the broader cryptocurrency
market.
While it's unlikely we're in for a repeat
of 2008, recent
volatility will certainly have investors wondering how to protect their portfolio in the event that our 7 - year bull
market has ended, and we're in for a
significant downturn.
Important factors that may affect the Company's business and operations and that may cause actual results to differ materially from those in the forward - looking statements include, but are not limited to, increased competition; the Company's ability to maintain, extend and expand its reputation and brand image; the Company's ability to differentiate its products from other brands; the consolidation
of retail customers; the Company's ability to predict, identify and interpret changes in consumer preferences and demand; the Company's ability to drive revenue growth in its key product categories, increase its
market share, or add products; an impairment
of the carrying value
of goodwill or other indefinite - lived intangible assets;
volatility in commodity, energy and other input costs; changes in the Company's management team or other key personnel; the Company's inability to realize the anticipated benefits from the Company's cost savings initiatives; changes in relationships with
significant customers and suppliers; execution
of the Company's international expansion strategy; changes in laws and regulations; legal claims or other regulatory enforcement actions; product recalls or product liability claims; unanticipated business disruptions; failure to successfully integrate the Company; the Company's ability to complete or realize the benefits from potential and completed acquisitions, alliances, divestitures or joint ventures; economic and political conditions in the nations in which the Company operates; the
volatility of capital
markets; increased pension, labor and people - related expenses;
volatility in the
market value
of all or a portion
of the derivatives that the Company uses; exchange rate fluctuations; disruptions in information technology networks and systems; the Company's inability to protect intellectual property rights; impacts
of natural events in the locations in which the Company or its customers, suppliers or regulators operate; the Company's indebtedness and ability to pay such indebtedness; the Company's dividend payments on its Series A Preferred Stock; tax law changes or interpretations; pricing actions; and other factors.
I expect that we'll gradually cover portions
of the short - call option side
of our hedges (leaving the defensive puts in place) if the
market continues lower without a
significant volatility spike.
Important factors that may affect the Company's business and operations and that may cause actual results to differ materially from those in the forward - looking statements include, but are not limited to, operating in a highly competitive industry; changes in the retail landscape or the loss
of key retail customers; the Company's ability to maintain, extend and expand its reputation and brand image; the impacts
of the Company's international operations; the Company's ability to leverage its brand value; the Company's ability to predict, identify and interpret changes in consumer preferences and demand; the Company's ability to drive revenue growth in its key product categories, increase its
market share, or add products; an impairment
of the carrying value
of goodwill or other indefinite - lived intangible assets;
volatility in commodity, energy and other input costs; changes in the Company's management team or other key personnel; the Company's ability to realize the anticipated benefits from its cost savings initiatives; changes in relationships with
significant customers and suppliers; the execution
of the Company's international expansion strategy; tax law changes or interpretations; legal claims or other regulatory enforcement actions; product recalls or product liability claims; unanticipated business disruptions; the Company's ability to complete or realize the benefits from potential and completed acquisitions, alliances, divestitures or joint ventures; economic and political conditions in the United States and in various other nations in which we operate; the
volatility of capital
markets; increased pension, labor and people - related expenses;
volatility in the
market value
of all or a portion
of the derivatives we use; exchange rate fluctuations; risks associated with information technology and systems, including service interruptions, misappropriation
of data or breaches
of security; the Company's ability to protect intellectual property rights; impacts
of natural events in the locations in which we or the Company's customers, suppliers or regulators operate; the Company's indebtedness and ability to pay such indebtedness; the Company's ownership structure; the impact
of future sales
of its common stock in the public
markets; the Company's ability to continue to pay a regular dividend; changes in laws and regulations; restatements
of the Company's consolidated financial statements; and other factors.
Important factors that may affect the Company's business and operations and that may cause actual results to differ materially from those in the forward - looking statements include, but are not limited to, increased competition; the Company's ability to maintain, extend and expand its reputation and brand image; the Company's ability to differentiate its products from other brands; the consolidation
of retail customers; the Company's ability to predict, identify and interpret changes in consumer preferences and demand; the Company's ability to drive revenue growth in its key product categories, increase its
market share or add products; an impairment
of the carrying value
of goodwill or other indefinite - lived intangible assets;
volatility in commodity, energy and other input costs; changes in the Company's management team or other key personnel; the Company's inability to realize the anticipated benefits from the Company's cost savings initiatives; changes in relationships with
significant customers and suppliers; execution
of the Company's international expansion strategy; changes in laws and regulations; legal claims or other regulatory enforcement actions; product recalls or product liability claims; unanticipated business disruptions; failure to successfully integrate the business and operations
of the Company in the expected time frame; the Company's ability to complete or realize the benefits from potential and completed acquisitions, alliances, divestitures or joint ventures; economic and political conditions in the nations in which the Company operates; the
volatility of capital
markets; increased pension, labor and people - related expenses;
volatility in the
market value
of all or a portion
of the derivatives that the Company uses; exchange rate fluctuations; risks associated with information technology and systems, including service interruptions, misappropriation
of data or breaches
of security; the Company's inability to protect intellectual property rights; impacts
of natural events in the locations in which the Company or its customers, suppliers or regulators operate; the Company's indebtedness and ability to pay such indebtedness; tax law changes or interpretations; and other factors.
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.
«Although the French election result has now been deemed to not be a threat, Greece remains a
significant concern and is likely to be a source
of volatility through the week,» said Stan Shamu
of IG
Markets in Melbourne.
In situations like we have just witnessed in the
market, prices dropped and investors rushed to get out, causing a
significant level
of volatility.
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.
«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.
As such, any spike in equity
market realized
volatility, even to historical average levels, has the potential to drive a
significant amount
of equity selling (much
of it automated).
Values may fluctuate significantly in times
of high
volatility or
market / economic uncertainty; such swings are even more
significant if your positions are leveraged and may also adversely affect your position.
Examples
of these risks, uncertainties and other factors include, but are not limited to the impact
of: adverse general economic and related factors, such as fluctuating or increasing levels
of unemployment, underemployment and the
volatility of fuel prices, declines in the securities and real estate
markets, and perceptions
of these conditions that decrease the level
of disposable income
of consumers or consumer confidence; adverse events impacting the security
of travel, such as terrorist acts, armed conflict and threats thereof, acts
of piracy, and other international events; the risks and increased costs associated with operating internationally; our expansion into and investments in new
markets; breaches in data security or other disturbances to our information technology and other networks; the spread
of epidemics and viral outbreaks; adverse incidents involving cruise ships; changes in fuel prices and / or other cruise operating costs; any impairment
of our tradenames or goodwill; our hedging strategies; our inability to obtain adequate insurance coverage; our substantial indebtedness, including the ability to raise additional capital to fund our operations, and to generate the necessary amount
of cash to service our existing debt; restrictions in the agreements governing our indebtedness that limit our flexibility in operating our business; the
significant portion
of our assets pledged as collateral under our existing debt agreements and the ability
of our creditors to accelerate the repayment
of our indebtedness;
volatility and disruptions in the global credit and financial
markets, which may adversely affect our ability to borrow and could increase our counterparty credit risks, including those under our credit facilities, derivatives, contingent obligations, insurance contracts and new ship progress payment guarantees; fluctuations in foreign currency exchange rates; overcapacity in key
markets or globally; our inability to recruit or retain qualified personnel or the loss
of key personnel; future changes relating to how external distribution channels sell and
market our cruises; our reliance on third parties to provide hotel management services to certain ships and certain other services; delays in our shipbuilding program and ship repairs, maintenance and refurbishments; future increases in the price
of, or major changes or reduction in, commercial airline services; seasonal variations in passenger fare rates and occupancy levels at different times
of the year; our ability to keep pace with developments in technology; amendments to our collective bargaining agreements for crew members and other employee relation issues; the continued availability
of attractive port destinations; pending or threatened litigation, investigations and enforcement actions; changes involving the tax and environmental regulatory regimes in which we operate; and other factors set forth under «Risk Factors» in our most recently filed Annual Report on Form 10 - K and subsequent filings by the Company with the Securities and Exchange Commission.
In the event
of financial turmoil affecting the banking system and financial
markets, additional consolidation
of the financial services industry, or
significant financial service institution failures, there could be tightening in the credit
markets, low liquidity and extreme
volatility in fixed income, credit, currency and equity
markets.
With the exception
of bonds, all
of these assets classes showed
significant volatility: emerging
markets, REITs and real - return bonds in particular.
The second half
of 2015 was marked by
significant market volatility, which was brought forth by plunging commodity prices, a strengthening U.S. dollar, growing global concerns over Chinese economic growth, and the subsequent devaluation
of the Chinese renminbi.
In short, we are well hedged against the potential for
significant market losses, but with the implied
volatility on index options fairly low, we've used shorter - term
market fluctuations to modify our hedges in a way that better allows for any extension
of the
market's advance.
Not only have we managed to avoid a
significant drawdown for close to three years, the
volatility of the
markets has also been well below average.
The word «hedged» as the first
significant term
of the name leads many people to think «low
volatility,» «mild - mannered,» «
market neutral» or something comparable.
It is invested primarily in the credit
market, not so much in government bonds because government bond yields are so low, but we're looking for absolute returns even if interest rates go up, so some
of the portfolio, a
significant piece
of it actually, is floating rate, so if interest rates go up, you just get higher cash flows, which will support higher returns, and the rest
of the portfolio is in relatively short maturity bonds, which will have some price
volatility and if there's bad
market conditions, will have temporary losses, so the goal is to offer something that is absolute returns.
Given the current low interest - rate environment, adding a high - yield allocation to your core bond portfolio or investing in a multisector bond fund may help increase your investment income — just remember that many
of these types
of funds still come with the potential for
significant volatility, particularly during times
of heightened economic and / or stock
market volatility.
With a new administration coming into office, and a number
of significant potential changes regarding health care and taxes on the docket, my theory was that changing policies would bring about great uncertainty and higher
market volatility.
With
markets entering a period
of significant volatility this past week, CNBC was curious what type
of discussions I'm having with clients.
trade prices may vary significantly from anticipated levels (including estimates based on intraday indicative values) during periods
of significant market volatility;
You should also prepare yourself for the inherent
volatility of the
market and the
significant fluctuation in stock prices.
While at Fidelity, Kathy led planning, pricing, analysis and strategic decision support functions for its U.S. and Canadian Institutional business lines during periods
of significant business growth and
market volatility and led financial planning and analysis for a
significant portion
of its outsourced 401 (k) and benefits administration business at the height
of «total benefits outsourcing»
market growth.
To understand how the
volatility strategies performed in the most
significant down
markets, we look at the three largest drawdowns
of the S&P 500 since 1990:
After the return
of volatility in the
markets, February turned out to be a fairly
significant downer in terms
of portfolio value for me.
These risks include: smaller
market capitalization
of securities
markets, which may suffer periods
of relative illiquidity;
significant price
volatility; restrictions on foreign investment; possible repatriation
of investment income and capital.
Also, with a political neophyte in the White House, there could be
significant volatility in all
of the
markets as the new President absorbs on - the - job training at our expense.
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.
During the recent global financial crisis, financial
markets in Europe experienced
significant volatility due, in part, to concerns about rising levels
of government debt and the prevalence
of increased budget deficits.
Holding any kind
of cryptocurrency is both complex and speculative, while
market volatility can also have a
significant impact on the value
of any coin.
News
of the heist on Friday triggered
significant volatility in the price
of XEM and the broader cryptocurrency
market.
Many
of these investors have not experienced the price
volatility that many earlier investors have, and it remains to be seen how a
significant shock to the
market will be handled by these investors.
GDAX later said it paused trading because
of significant volatility «to ensure a fair and orderly
market.»
These differences in the values may be
significant during periods
of high cryptocurrency
market volatility.
The execution
of this policy change will be important since an unexpected, quick, or
significant bump in interest rates could cause a sharp
market reaction and produce sudden
volatility in rates; slow, steady, and deliberate rate hikes will be more manageable for the
market to absorb.
Investors experienced a
significant increase in equity
market volatility, both domestically and globally, in the second half
of 2015, with a near doubling
of intraday stock
market volatility in August and September in the United States.