Sentences with phrase «volatility of the market because»

Not exact matches

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.

Stock market volatility reminds us privatizing Social Security is a bad idea, because it subjects every worker's lifetime contributions to the caprices of the market.

«This is obviously a confidence vote that China's out of the shadow of the market crash last summer and also the mini-crisis in the beginning of the year because of the currency volatility.»

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.

And because they're on leverage, it only increases the size of the losses and amps up volatility in the market.

Many investors are nervous about investing in the stock market because of the recent volatility.

That critique misses the mark because the objective of low volatility strategies is not to capture all of the upside in a bull market, but rather to perform less...

Because of the yen's propensity to move in the opposite direction of the domestic stock market, unhedged exposure to the country may reduce volatility.

Beyond the absurdity of basing investment decisions on a temporary weather event, these recommendations can be harmful to investors because they involve some stocks with very shaky fundamentals at a time when market volatility makes investing in strong businesses all the more important.

Traditionally, quantitative funds perform better in down markets because of better risk control, and this volatility will be no exception.

«When I purchased long - term zero - coupon bonds in the early 1980's at market yields in excess of 13 %, I welcomed the prospect of outsized volatility because I felt it would eventually work in my favour.»

Despite the recent volatility in the market, cryptocurrency is here to stay because of the immense value that blockchain technology offers.

Dividend stocks are enticing to investors during periods of volatility because in such a market they tend to perform well relative to more growth - oriented or higher - risk equities.

Because markets rarely move in lockstep and, even if they do, volatility along the way can create headaches for even the most patient of investors.

Those funds also are exhibiting less volatility than the market because of the juicy yields being paid.

I say crowd because it is not just AQR and Bridgewater involved in risk parity but there are many volatility sellers piggy backing on the power of the largest market players.

«If they simply pause their spending or become more prudent in their spending because of market volatility, it drags down consumer spending in the aggregate.»

«The later stages of the 2009 — 2017 bull market are a valuation illusion built on share buyback alchemy... The technique optically reduces the price - to - earnings multiple because the denominator doesn't adjust for the reduced share count... Share buybacks are a major contributor to the low volatility regime because a large price insensitive buyer is always ready to purchase the market on weakness... Share buybacks result in a lower volatility, lower liquidity, which in turn incentivizes more share buybacks, further incentivizing passive and systematic strategies that are short volatility in all their forms... Like a snake eating its own tail, the market can not rely on share buybacks indefinitely to nourish the illusion of growth.

The Bank of America report on indexing last month pointed out that while the market overall seems smooth at the moment, there has been a recent spike in the volatility of stocks that are owned largely by ETFs and index funds, probably because of liquidity.

Equity market volatility has increased from the very low levels of last year, partly because of concerns about the direction of international trade policy in the United States.

Despite the strong start to the year, profits are in danger of weakening because of the higher volatility that has been caused by instability in the Chinese economy and the ripple effects that have sent global markets lower.

I have given consideration to the 529 college savings plans but I am somewhat reluctant just because of the volatility of the market and the impact it could have on my savings.

Fixed annuities address some of the worry about volatility because your savings aren't exposed to market fluctuations.

Because the pattern of risk and returns from bonds and short - term investments is different from stock market returns, adding them to a portfolio of stocks may mitigate some of the overall volatility you experience.

The basic reason why it is important to understand volatility is because it will tell you what your best plan of action is, as far as what type of position to take in the markets.

How often in the last few years have investors said they're staying out of the equity markets because of the volatility we've experienced recently?

Liquidity providers in option markets prefer to hedge mostly with other options, hedging residual greeks with other assets such as the underlying, volatility, time, interest rates, etc because trading costs are lower since the two offsetting options hedge most of each other out, requiring less trading in the other assets.

Because of these manipulative or computer - driven forces on the market, the market is prone to excessive volatility (for an example, check out the «flash crash» of May 6, 2010).

It is invested primarily in the credit market, not so much in government bonds because government bond yields are so low, but we're looking for absolute returns even if interest rates go up, so some of the portfolio, a significant piece of it actually, is floating rate, so if interest rates go up, you just get higher cash flows, which will support higher returns, and the rest of the portfolio is in relatively short maturity bonds, which will have some price volatility and if there's bad market conditions, will have temporary losses, so the goal is to offer something that is absolute returns.

Know your Risk Tolerance: because of the volatility of forex market and also of the pair a trader selects to trade, the chances of a loss maximize.

Dividends can help combat volatility — that's because dividend yield increases as the market price of a stock falls, making the stock more attractive

Eventually I got rid of the shares because I wasn't strong enough to handle the volatility of the market.

In a trading market, it exists because market makers or specialists are willing to offer markets of a certain size and bid - ask spread given the usual price volatility.

Volatility in currency markets could cause problems because Beijing sets the value of the yuan against a basket of the currencies of its major trading partners.

Example: while gold has three times the volatility of the stock market, because it performs differently than stocks, it can calm the top line of a stock - heavy portfolio.

On the other hand, if you are near or already in retirement, or if you just want to invest for a short - term goal (such as buy a house in 5 years), then you may want to be conservative with your money because of the volatility of the stock market.

Income payments are locked and free from market volatility and are backed by the claims - paying ability of New York Life Insurance and Annuity Corporation (NYLIAC).3 What's more, you may be able to generate more income than you would with other alternatives because you're pre-funding your retirement income.4

Investors systematically overpay for high - volatility, high - beta stocks because they like the thrill (kind of like gambling or buying a lotto ticket) leaving a large swath of the market undervalued and underowned.

Many traders are moving out of stocks, futures, and equities to invest in the Forex market, because of it's high volatility and high liquidity.

Because there are many more sellers than there are buyers (after all, what kind of person would want to enter the market in times of extreme volatility?)

What may not be immediately apparent (as is the case with many things we learn about stock market behavior) is that those of us who have been dollar cost averaging should probably be smiling from ear to ear because the market volatility is actually doing us a service.

It usually makes more sense to lock in most of your profit or close a trade out that is deep in profit, because if there is one thing we can all agree on about the forex market it's that it ebbs and flows and doesn't travel in a straight line for very long except on rare times of economic volatility.

Second, because the plan is a long term strategy and doesn't rely on the market itself when making decisions, you aren't timing the market at all and the volatility of the market will have much less effect on your portfolio's overall gains.

In fact I would argue that people would be more interested in an alternative investment platform such as LC because of the volatility of the stock market.

«Because of the potential for overheating in the economy, we think volatility in markets is going to be higher,» he said.

While I think it's reasonable to lower your expectations for bond market returns and allow for higher volatility because of the level of rates, it seems to me that many of the fears about fixed income are overblown.

Few investors ever achieve even close to «average» returns because of volatility caused by market risk.

Options trade at certain levels of implied volatility because of current market activity.

He even goes on to say that because of the currently low volatility the market can be seen as less risky, while the data on volatility - indexes clearly indicates, that they can snap back very quickly, as stock - markets correct / fall.

Equity instruments have always been marked to market, because of their volatility.