«Because of the potential for overheating in the economy,
we think volatility in markets is going to be higher,» he said.
Not exact matches
«I
think if there is
volatility and a pullback
in the
markets, for us, just given where valuations are, that creates a great opportunity to be buying the
market,» Hosie added.
Quadratic Capital Management's Nancy Davis — who correctly predicted the blow - up
in the popular wager on low
volatility by hedge funds before last week's plunge —
thinks the
market will remain turbulent.
Timmer: You know, the last two years until the January high, were really extraordinary times for the
market, and I fear that investors got spoiled by that, because the S&P was up I
think 52 %
in two years and
in 2017 the
volatility — the standard deviation of those returns — was at an all - time low of 3.9.
You could say that 2018 is still a young year and it's way too early to judge things, which is true, but the level of
volatility in both stocks and bonds during February is making this year feel like we've lived through two full years already, and I
think what the
markets are signaling is more likely to be a sea change than a blip.
And I
think that given higher
volatility in the
markets, going into higher yielding bonds or stocks, the risker ones, is unadvisable.
Given the expected uncertainty and potential
volatility in the coming year, I
think avoiding high - priced mistakes and management teams that lack integrity — 2 things that owners of an entire
market index of companies can not easily avoid — may prove helpful.
Here's a piece I wrote recently for Bloomberg talking about both short - and long - term
volatility in the
markets and how investors can
think about its meaning.
Michael Hasenstab: I
think what's interesting about the
volatility we are seeing related to the political polarization
in the United States and Europe is that it's juxtaposed against a very different dynamic happening
in emerging
markets.
While I've long recognised the flaws
in the «bell curve» and witnessed them on an almost daily basis, I found the book a useful construct to help
think about
volatility and
market risk.
I
think the secular equity bear
market we are currently
in could continue for several more years, thus, lower
volatility dividend stocks may offer some protection while still providing equity exposure.
The stock
market has taken investors on a wild ride
in recent days, but Mike Wilson, Morgan Stanley's chief investment officer and chief U.S. equity strategist, doesn't
think the sudden spike
in volatility portends the start of a bear
market.
We don't
think this precludes the
market from further
volatility in the coming days or weeks, but we do
think this dust will settle as well.
In summary, there is some short - term volatility in the markets and we think that gives us an opportunity to reposition our portfolio
In summary, there is some short - term
volatility in the markets and we think that gives us an opportunity to reposition our portfolio
in the
markets and we
think that gives us an opportunity to reposition our portfolios.
If much of the investment into bond mutual funds that has occurred the last couple of years is for purposes of dampening the
volatility of a portfolio — and with the 10 - Year Treasury yield at 1.8 percent it's difficult to argue for a different motivation - then it's important to
think through the thesis that bonds will defend a balanced portfolio
in an equity bear
market in the same way they have, especially to the extent they have
in the last two bear
markets.
It's easy to
think that
markets have been on a steady grind higher during this period of low
volatility, but when we look more closely, we find that there have been distinct, dynamic and evolving trends
in place.
Overall, we
think the European economy
in general is doing well and the so - called «real economy,» tied to the production of goods and services, seems, so far, to have been insulated from the
volatility in the financial
markets.
The stock
market does not work as efficiently as some would like to
think, or indeed hope that it would, otherwise we would not see
volatility in the
market as much as we do, which is due to human emotion and people often jumping on the «band wagon».
Against this background, we
think that the divergences
in the monetary policies of the major economies are likely to become more apparent, which could increase pressure on some central banks and magnify
market volatility.
TODAY»S TOPIC: 3 Overlooked (But Simple) Ways to Boost Portfolio Returns Hosted By: Dominique J. Henderson, Sr., CFP ® (Send me an email) Get Alerts at: Link to Show Episode (For mobile users) February was a rough month
in the
markets... lots of
volatility... And just
in case you might be
thinking what happens if the
markets take -LSB-...]
With all the
volatility in the stock
market lately, I
thought it would be a good time to point out that this is only natural.
There's no way to know for sure what the stock
market will do, and it's easy to let
market volatility quickly turn into
volatility in your
thinking.
With that
in mind, we also
think investors should consider preparing for rising
volatility following an unusually quiet period for global financial
markets.
I had a talk with LIC manager to convert from Fixed to Floating rate, But the lowest possible conversion floating rate offered to old customer is only 10.90 %, Which i don't
think make any sense considering the
market volatility in 5 years from now.
I
think the chances of those trying to negotiate a deal coming up with something that is going to cripple the economy long term are slim, but I
think there will be a bit of
volatility in the
market over the next few months until things settle out.
If recent
volatility in the equity
market has you
thinking about different ways to diversify your assets, new data released by Roofstock illustrates why single - family rentals are a strong investment alternative to stocks and bonds.
In light of some recent minor volatility in the stock market, I thought now would be a great time to revisit the very nature of dividend growth investing and why it's such a robust strategy for those aiming to one day live off of their growing dividend incom
In light of some recent minor
volatility in the stock market, I thought now would be a great time to revisit the very nature of dividend growth investing and why it's such a robust strategy for those aiming to one day live off of their growing dividend incom
in the stock
market, I
thought now would be a great time to revisit the very nature of dividend growth investing and why it's such a robust strategy for those aiming to one day live off of their growing dividend income.
As for why these regional differences exist, some homeowners
think it might be due to the
volatility of the
market they're
in.
At a time when many, if not most, investors are fixated on
market volatility and worried about losing their shirts should the
market melt down
in the not - to0 - distant future, you're
thinking about saving and investing for the long - term.
I do however agree with your comments, make a Strategy over a lifetime, develop good
thought processes and analytics, don't get crazy over the daily up and down, do keep cash
in a safe place to weather the storm of
market volatility.
Given the recent
volatility in the bond
market, we
thought it was a good time to re-visit why we prefer bond funds to bond ETFs (we first wrote about this
in the March 2013
in NoLoad FundX and Janet Brown wrote about it on the Forbes Intelligent Investing blog that month, too).
February was a rough month
in the
markets... lots of
volatility... And just
in case you might be
thinking what happens if the
markets take a prolonged tumble.
In fact, a recent Fidelity survey found that many investors think index funds, which attempt to match a market benchmark like the S&P 500 (before fees), are less risky than active funds, which attempt to outperform a benchmark.1 That may help explain why during 11 weeks of heightened market volatility in 2015, investors bought index funds but sold active funds at seven times the average rate during nonvolatile weeks
In fact, a recent Fidelity survey found that many investors
think index funds, which attempt to match a
market benchmark like the S&P 500 (before fees), are less risky than active funds, which attempt to outperform a benchmark.1 That may help explain why during 11 weeks of heightened
market volatility in 2015, investors bought index funds but sold active funds at seven times the average rate during nonvolatile weeks
in 2015, investors bought index funds but sold active funds at seven times the average rate during nonvolatile weeks.2
But given the
volatility in the
market I don't
think thats a good enough return for most people.
Or you are located
in relatively large
market but you
think that bonds are fundamentally more attractive
in other currencies (higher credit spreads), but you want to limit the
volatility.
I
think you'd have to believe
in the tooth fairy to believe that you could easily outperform the
market by seven - percentage points per annum just by investing
in high
volatility stocks.»
Given the
volatility and disorder to be found hour - by - hour, if not minute - by - minute,
in capital
markets both at home and abroad, we
think our blog is aptly named.
There are actually two; 1) the Greek situation will probably stumble along
in its current form for a while, creating substantial
volatility in world stock
markets, and 2) given all this negative news there may be some nuggets of gold
in the Greek stock
market that are worth a look for adventurous value investors (the WSJ had a piece on Greek shipping companies today, so I'm not alone with this line of
thinking... beware!).
But I
think the key points to make to the investors is that risk should not be defined as short - term
volatility but permanent loss of capital, which can happen
in the bond
markets, as investors
in Greek bonds found out.
Think buying a property — the value of that property isn't assessed daily, therefore short - term
volatility in the equity
markets is unlikely to affect the value of the property.
Due to the high
volatility and cyclical nature of the office
market timing a well -
thought strategy
in terms of the timing of
market entry and exit, location and quality of product to be targeted it is critically important for achieving targeted returns.