Also keep in mind that flexible bond strategies have the potential to outperform in rising and flat interest rate environments, and can help provide meaningful diversification, which may reduce
overall volatility in a portfolio.
Dollar cost averaging is an investment strategy designed to reduce
volatility in a portfolio by purchasing an investment in fixed increments, rather than all at once.
Investors who have a longer time horizon and are willing to embrace more risk or
volatility in their portfolio in exchange for the possibility of a higher return would select a fund with a higher equity holding — say LS80 or even LS100.
Part of the reason to have bonds is to have stability on days like this; government bonds provide that stability, and they're acting like they should act, by providing that cushion to the
equity volatility in your portfolio.
The industry got a jolt recently when the California Public Employees Retirement System announced it was lowering its historic 7.5 percent expected rate of return in an effort to reduce
volatility in its portfolio caused by reaching for risk.
«For investors that are concerned about
potential volatility in their portfolios, these new funds allow them to maintain exposures to equities for the long - term, while also providing additional flexibility to protect or benefit from fluctuations in the Canadian currency.»
Also keep in mind that flexible bond strategies have the potential to outperform in rising and flat interest rate environments, and can help provide meaningful diversification, which may reduce
overall volatility in a portfolio.
Dollar cost averaging is an investment strategy designed to reduce
volatility in a portfolio by purchasing an investment in fixed increments, rather than all at once.
Having a higher weighting in bonds and a lower weighting in stocks has, in the past, lowered
the volatility in your portfolio while also providing some downside protection against large losses.
It's true that the volatility of cash is low, but there are other ways to potentially bring down
volatility in a portfolio: adding bonds is one option.
Diversification can help mitigate the risk and
volatility in your portfolio, potentially reducing the number and severity of stomach - churning ups and downs.
In Street Freak, there's a great contrarian pick that might smooth out
the volatility in your portfolio.
What's more, if you choose stocks that have a low or inverse correlation with one another - an oil producer and an airline, for example - you further reduce
the volatility in your portfolio, because the stocks react in different ways to the same events (a change in oil prices, for instance).
It's true that the volatility of cash is low, but there are other ways to potentially bring down
volatility in a portfolio: adding bonds is one option.
Diversifying your investments won't necessarily boost performance, but it may reduce
the volatility in your portfolio.
«Today, we are seeing strong demand for solutions that allow investors to express a view on currency, to reduce
volatility in their portfolios, or achieve outperformance,» said Pat Chiefalo, Head of Canadian Product, iShares, BlackRock Canada.
Does this limit the amount of
volatility in your portfolio?
Even if RRBs can lower the overall
volatility in a portfolio, it's easy for many investors to lose sight of the big picture and to focus on this one asset class in isolation.
It helps reduce
the volatility in my portfolio with lots of income to reinvest.