This is in the same range as some of the most
volatile stock indices available, such as emerging markets and world - wide small caps.
Not exact matches
In a sign of some uncertainty among investors about the impact of the BOJ's latest measures, Japanese markets were
volatile following the announcement, with the benchmark Nikkei
stock index down giving up initial gains and moving into negative territory.
Benchmark
stock indexes were also
volatile Wednesday, as investors mulled the impact of rising bond yields and disappointing earnings.
And October has historically been the most
volatile month of the year for
stocks, so it's not unusual to see big swings in the major
stock indexes.
When an
index, ETF, or
stock approaches the level of its 52 - week high (or multi-year high), the price action often becomes a
volatile tug - of - war for at least a few days.
That drop in the volatility
index speaks to how this earnings season hasn't been as
volatile, in terms of
stock reactions, as it may seem at first blush.
The graph below shows the value of the S&P 500
index, which is generally representative of the
volatile stock action from the mid-1990s to present.
The fund seeks to track a growth - style
index of medium - sized companies, whose
stocks tend to be more
volatile than large - company
stocks.
With all that in mind, US
stocks should have been slightly boosted by the subtle developments, and the major
indices tried to rally after the initial
volatile period, but the broader technical setup overwhelmed the attempt, and equities finished near their lows.
Encouraging Gains in US Futures It would appear
stock markets are starting to regain some of their composure following a couple of very
volatile weeks in which US
indices fell more than 10 % from their record highs.
Investment in these companies is speculative,
volatile, and features a high level of risk,» Israel Securities Authority (ISA) chairperson Anat Guetta said two weeks ago in announcing the ISA's decision to bar such companies from inclusion in Tel Aviv
Stock Exchange
indices.
Well, some
stock traders will probably tell you it usually means relatively tame trading the day before the report, maybe some pre-market fireworks in
stock index futures right after the numbers are released at 8:30 a.m. ET, and more
volatile trading the remainder of the day as the market attempts to gauge the report's supposed bullishness or bearishness.
But that requires that you invest in
volatile investments with the risk of losing money, like a
stock index fund.
According to the article, correlation normally runs higher during
volatile times but it's also due to the increasing popularity of
index funds and exchange - traded funds, which trade the all the
stocks in the
index.
«From a market risk perspective, we remain concerned about the influence passive investments, such as ETFs and
index funds, could have on
stock prices in a
volatile market.»
The bond upgrading component by itself was 62 % less
volatile than the S&P 500
Index, whereas the blended approach was 71 % less volatile than that stock in
Index, whereas the blended approach was 71 % less
volatile than that
stock indexindex.)
Leveraging an «A» - rated
index by 10 times would still be less
volatile than taking an unleveraged position to high yield credits, or to
stocks, he said.
If an individual small cap
stock is too
volatile to hedge affordably, an investor could hedge with the Russell 2000, a small cap
index, instead.
Any
stock that closely tracks the market is considered average risk while a
stock with prices less
volatile with that of the market
index is considered less risky and vice versa.
Additionally, since the fund is comprised of NASDAQ
stocks, it will tend to more more
volatile than a broader market
index like the S&P 500 and of course, other safe investments with lower volatility that rely on income for net returns rather than capital appreciation.
Growth
stocks are
volatile when compared to broad market
indexes and they are tied to the health of U.S. economy as a whole.
(*) Although
volatile in the short term, the S&P 500
index, an
index that includes the 500 largest companies listed on the New York
Stock Exchange, has provided an average return of 10 % over its history.
IBM's falling
stock price in response to
volatile earnings, in contrast, has pushed its dividend yield up to 4 %, among the highest on the Dow Jones
index.
This is my razor: if they can't manage owning an S&P 500
index fund, what makes us think that they can manage a more
volatile portfolio of common
stocks?
People expect and accept volatility in
index fund prices only because
index funds are a type of
stock investment and the earlier types all produced
volatile prices.
By their nature, bonds are a lot less
volatile in
stocks: a traditional bond
index fund, for example, is not likely to lose more than 5 % or 6 % even in a very bad year, whereas that's a bad day for
stocks.
Covered Call Strategy Risk: Trading in
stocks and options that compose the covered S&P 500
Index portfolio is speculative and returns can be extremely
volatile.
Tags: 2011 Third Quarter, Bear Markets, Crash of 1929, Crash of 1987, Credit Crisis, Dow, Dow Jones Industrial Average, ETFs, Euro Zone, Global Economic Slowdown,
Index Put Options, Investors, Long Term Capital Management, October, Risk Tolerance, Russian Ruble Shock, September,
Stock Market, Turbulent Times,
Volatile, Worst Month for
Stocks
The Consumer Price
Index, a Commerce Department inflation measure, came in higher than expected in January, and the
stock market has been
volatile; how the Fed will react is unclear.
If you think the
stock market has been
volatile, you might consider a dose of Dramamine before checking out Fannie Mae's Home Purchase Sentiment
Index (HPSI).