While bonds fluctuate less than
stocks over the short run, they'll deliver less in the long run, so it's critically important for investors to balance their ability to handle volatility today in order to accomplish their goals tomorrow.
Not exact matches
For example, investor Jack Bogle predicted at the outset of the Trump administration that the president's proposed infrastructure spending would be good for the economy in the
short term but would be detrimental to the economy,
stock market and society
over the long
run.
Our concern about profit margins is not that earnings will retreat
over the
short -
run and pull
stock prices lower.
One is legitimate — every year in which
short - term interest rates are expected to be zero instead of say, a typical 4 %, should reasonably warrant a 4 % valuation premium in
stocks and bonds,
over and above
run - of - the - mill historical norms (one can demonstrate this using any discounted cash flow approach).
The idea is to limit
stock selection to those that have higher odds of making an explosive
run over a
short period of time.
As I have mentioned previously I simply
run a nightly scan of Long and
Short stock candidates hitting 52 week highs / lows and keep note of these
stocks and
over the course of the coming days and weeks I look for which
stocks keep hitting the parameters of my scans before taking a closer look at the chart, once I see there is a clean smooth trend be it going up or down I then calculate from that afternoons closing price and where the stop loss would need to be positioned on the first day the trade is placed in line with my risk management and then simply wait for the open the following day to open the trade then my system does the rest.
History shows
stocks have generated the best returns of any asset class
over the long
run within North America — but they are volatile in the
short run and investors who track things too closely are more likely to be frightened out of their positions prematurely.
Many
stocks that go down in the
short -
run will make gains
over a longer time - frame.
Although
stocks can return well
over the long
run, in
short or immediate term, they may well be outperformed by bonds, especially at certain times in the economic cycle.
Over the long
run,
stock prices are driven by proven company earnings and cash flow, while in the
short term, changes in expectation can move
stock prices sharply.
While the
stock market isn't necessarily very good at pricing
stocks over the
short term, price and value tend to more closely correlate
over the long
run.
Although Duperreault's move probably angered
short - term traders, it's good for AIG
stock over the long
run.
I think people were dissuaded from the idea because money supply changes in the
short run did not correlate that well with the movements in
stock indexes
over the next 25 years.
On more than one occasion each year I sell out of positions I'm holding after a
stock runs up 30 %
over a
short period of time.
Market prices in OPMI markets seem to be set by market participants focused on
short -
run outlooks and trying to pick market bottoms; technical chartist considerations; predictions about
stock market movements
over the near term; general
stock market predictions at the expense of company analysis; emphasis on earnings per share, cash flow and dividends to the exclusion of balance sheet considerations, especially creditworthiness.
But because of the limits features like participation rates and caps place on returns, the value of your annuity may grow much more slowly
over the long
run than had you simply put some of your money in cash and / or
short - term bond funds for security and the rest in low - cost
stock index funds.
That's just a small illustration of everything that's wrong with the financial media (& so many of its devotees): Obsessing
over short - term investment horizons & performance, masking & mistaking ignorance with confidence, being ruled by fear & greed,
running with the herd chasing hot new fads &
stocks, and always always looking for the slick salesman, the shortcut, the sure thing...
Hanging onto reward points isn't like having money in the
stock market, which is unpredictable in the
short run and tends to go up
over time.