Smart investors always seek to balance
the volatility of the stocks in their portfolio with a few well chosen bonds.
For some investors, bonds may be attractive for predictable income, and as an offset to
the volatility of stocks in your portfolio.
Beta — a measure of
volatility of a stock in comparison to the market as a whole; the risk of owning stocks in general; or an investment's sensitivity to the market.
The factors that decide the amount of initial margin are the average
volatility of the stock in concern over a specified period of time and the interest cost.
Not exact matches
CNBC's Kayla Tausche speaks to Stuart Bernstein
of Goldman Sachs, about venture capital trends
in tech and sentiment
in Silicon Valley with recent
volatility in high growth
stocks.
Volatility has been the byword for the Chinese
stock market
in the recent past, not least because the government has a habit
of intervening
in the form
of lockdowns and corporate actions whenever the Shanghai index dives.
In a falling market, you want the large - cap dividendpaying
stock that has low beta (a measure
of volatility), he says.
Shares
of Spotify Technology SA are set to begin trading on the New York
Stock Exchange on April 3
in an unusual direct listing that gives insiders the option to sell instantly and does without the support
of traditional underwriters - a recipe for potentially high
volatility in early trading.
Sudden changes
in volatility and monetary policy could spark an «interesting» period for
stock markets
in the next couple
of years, the CEO
of Barclays warned Thursday.
The findings correlate with an uneven year for business
in 2015, due to
stock market
volatility in the third quarter, which ended a long bull run
in the wake
of weakening global economies and a devaluing
of China's currency.
In recent years they have added international equities and small - cap
stocks — asset classes that come with higher
volatility than sturdier blue chips, but also offer the promise
of higher returns.
David Rubenstein, co-founder and co-executive chairman
of The Carlyle Group, speaks about recent
volatility in stock markets.
After years
of calm,
volatility returned to global
stocks last week, especially
in the United States.
MORE SHOES TO DROP: The
stock slump led to a massive unwinding
of a short position
in products related to the VIX
volatility index, as Credit Suisse and Nomura announced the shuttering
of their respective exchange - traded notes that bet on lower
volatility.
The threat
of escalation
in Syria and the trade dispute between Beijing and Washington have dampened
stock market confidence, while gold has traditionally been a safe asset for investors
in times
of volatility.
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.
In periods
of broad market decline and rising
volatility, some Dow consumer
stocks can be safety plays, according to CNBC analysis using Kensho.
The board has been dealing with the
volatility of publicly traded
stocks and low returns from government bonds by diversifying into other forms
of assets, including equity
in private companies and investments
in infrastructure such as highways and real estate.
Although value
stocks typically hold up better
in times
of volatility, this bull market has been exceptionally smooth — up until the last year, that is — and favored high - growth momentum
stocks, which tend to have more expensive valuations.
Stocks have plunged
in the last week as traders worried about rising interest rates and inflation, bringing an end to more than a year
of historically low
volatility.
In other words, all those episodes
of volatility have created attractive opportunities to buy
stocks.
Those experts include Marko Kolanovic, JPMorgan's global head
of quantitative and derivatives strategy, who has
in the past said the shorting
of volatility reminded him
of the conditions leading up to the 1987
stock market crash.
LJM funds posted heavy losses after the Cboe
Volatility Index, the most widely followed barometer
of price swings expected
in the S&P 500
stock index, logged its biggest - ever single - day jump on Feb. 5.
His expectation is that the overall
volatility of a portfolio 30 percent
in short - term bonds and 70 percent
in stocks is going to be on par with one that is 40 percent invested
in a fund tracking the Bloomberg Barclays U.S. Aggregate index and 60 percent
in stocks.
Those
stocks also tend to hold up better
in periods
of volatility, when hedge funds often sell their large - cap
stocks to boost their own liquidity.
If Brexit - like sentiment
in other nations leads to restrictions on the flow
of trade and labor, he adds, «that is going to create greater uncertainty and
volatility» — at a time when some commentators believe that global
stock and bond prices are overdue for a tumble.
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.
More from Investor Toolkit: Warren Buffett explains how to invest
in stocks when inflation hits markets How investors can take advantage
of market
volatility Financial advisors are missing one key technology disruption
The most recent such crisis, and the continued
volatility of the markets, means
stock in the views
of NYU professor Nouriel (Dr. Doom) Roubini has never been higher.
Shares
of NetSuite's
stock rose as much as 8 percent on Thursday, following a
volatility halt earlier
in the day.
The market
volatility index, otherwise known as the VIX and even better known as the fear gauge — a measure
of the expected
volatility of U.S.
stocks — has surged to the highest level
in more than two years.
Citigroup said the sharp rise
in stock trading revenue was a byproduct
of increased market
volatility in equity markets.
The
volatility in the
stock market, especially the Nasdaq, is a classic indicator
of the transitionary nature
of the times.
The determination
of Albertsons» majority owner, private equity firm Cerberus Capital Management LP, to carry out the IPO despite
volatility in the
stock markets underscores its confidence that it can fetch a high valuation for Albertsons.
The firm's US equity chief, Keith Parker, said recently that the lack
of accompanying
volatility in Treasurys is actually a highly bullish signal for
stocks.
Many investors are nervous about investing
in the
stock market because
of the recent
volatility.
The
stock market opened way down, continuing last Friday's selloff, though it has climbed back since the open — implying the return
of volatility — as skittish investors continue to fear the sequence I describe
in this AM's WaPo: tight labor market, wage pressures, higher interest rates, inflation, lower profit margins.
«Market
volatility should be a reminder for you to review your investments regularly and make sure you consider an investing strategy with exposure to different areas
of the markets — U.S. small and large caps, international
stocks, investment - grade bonds — to help match the overall risk
in your portfolio to your personality and goals,» says Dowd.
They also developed new rules, known as circuit breakers, allowing exchanges to halt trading temporarily
in instances
of exceptionally large price declines.12 For example, under current rules, the New York
Stock Exchange will temporarily halt trading when the S&P 500 stock index declines 7 percent, 13 percent, and 20 percent in order to provide investors «the ability to make informed choices during periods of high market volatility.&r
Stock Exchange will temporarily halt trading when the S&P 500
stock index declines 7 percent, 13 percent, and 20 percent in order to provide investors «the ability to make informed choices during periods of high market volatility.&r
stock index declines 7 percent, 13 percent, and 20 percent
in order to provide investors «the ability to make informed choices during periods
of high market
volatility.»
For example, if you're early on
in your career, most
of your money will be held
in growth oriented
stocks with a small percentage
in bonds, and as you mature, your assets will slowly shift to more stable
stocks and a greater percentage
in bonds to help reduce
volatility.
The first
Stock Connect deal added a new element
of uncertainty to the market, said Rui Huo, a researcher at RMIT University
in Melbourne, Australia, who is a co-author
of a recent paper on the effect
of Stock Connect on
volatility.
In addition to the various leveraged ETFs, $ TAN is one
of the few non-leveraged ETFs that trades with the
volatility of a typical small to mid-cap
stock.
In actuality, while the skill set necessary to make intelligent decisions can take years to acquire, the core matter is straightforward: Buy ownership
of good businesses (
stocks) or loan money to good credits (bonds), paying a price sufficient to reasonably assure you
of a satisfactory return even if things don't work out particularly well (a margin
of safety), and then give yourself a long enough stretch
of time (at an absolute minimum, five years) to ride out the
volatility.
The stochastic discount factor is time varying and by just the right amount to explain the variance
in returns (and the high
volatility of the
stock market).
In order to achieve these type
of gains, the
stocks we swing trade are typically high beta, with plenty
of volatility.
Although there may be hundreds
of stocks with nice - looking chart patterns
in a typical bull market, getting
in the habit
of checking for ample
volatility (Price / ATR Ratio) and liquidity is an excellent way to further narrow down your arsenal
of potential
stock trades to consider.
If markets pick back up venture funding will return as it was before the 3 - day, 10 % correction but if the VIX goes up (a measure
of expected
volatility in the
stock market) then expect rounds to take longer.
«The challenge
of executing [QE3] may cause
volatility for
stocks and bonds,» Knight wrote
in the firm's fourth - quarter outlook on Wednesday.
With Group
of Seven (G7) sovereign bond yields at historically low levels, some income - seeking investors have turned to higher -
volatility securities like dividend - paying
stocks in an attempt to capture additional income.
But when you get to call them
stocks and you get
stock quotes daily on these pieces
of paper that bounce around put people put numbers on it and
volatility and all these other things where really it's not that meaningful, you know from one sense if you're investing
in businesses and you did a lot
of research and invested
in eight different businesses with the proceeds
of your sale, people would think you're a pretty prudent guy.