Sentences with phrase «volatility regime»

And they are typically buying opportunities, provided there are no economic or financial shocks to today's low volatility regime.

We expect spreads to trade sideways to wider on renewed uncertainty, amid a new higher volatility regime.

A new volatility regime is upon us, but the transition has been more violent than anyone could have expected.

We see the low - volatility regime sticking for longer, but see potential for episodic spikes amid rising risks.

Our research suggests that breaks to a high - volatility regime rarely occur without the economic expansion coming to an end.

However, should inflation start to move meaningfully above 2 %, the low volatility regime is unlikely to survive.

If we are moving to a higher volatility regime, investors should expect some multiple compression.

We find that equity pull - backs are short and recoveries quick in low macro volatility regimes.

You can see from the following table that there have been very distinct volatility regimes over time in the stock market:

Now, with the low - volatility regime ending as central bank normalization progresses, a new test has begun.

As Goldman Sachs pointed out recently, there have been 14 low - volatility regimes since 1928 and all have required a large shock — namely a war or recession — to end.

One way or another, as the low - volatility regime winds down, buybacks appear destined for a day of reckoning.

We find that equity pull - backs are shorter and recoveries quicker during low macro volatility regimes.

Due to the power of compounding as illustrated in Exhibit 1 and the low volatility regime we have had in the past a couple of years, the S&P 500 VIX Short Term Futures Inverse Daily Index has outperformed the «true short» of its benchmark, the S&P 500 VIX Short - Term Futures Index.

Rick and Russ on the new volatility regime, why risk is being misapprehended, and how to navigate these...

Beyond more sleepless nights, this shift in the volatility regime has implications for portfolio positioning.

The widening of spreads and accompanying tightening in financial market conditions have contributed to the shift in the volatility regime.

But I can say with a very high degree of confidence that we have now departed the low volatility regime and entered a high volatility regime.

We see the probability of a volatility regime shift as low — as long as the economy remains stable and systemic financial vulnerabilities are kept in check.

As Artemis Capital's Chris Cole has said about the end of the low - volatility regime, February's VIX tantrum was likely «just an appetizer».

In a report released last October, Artemis Capital encapsulated the importance of buybacks to the low - volatility regime:

For anyone holding an electronically traded product (ETP) tracking the inverse of the VIX index, the end of the low volatility regime that was 2017 obliterated their allocated positions.

The past two weeks have offered a clear illustration of the importance of buybacks to the low - volatility regime.

Many assume central bankers are aware unwinding QE could end the low - volatility regime and will act to protect the «new normal».

Buybacks have been essential fuel for the low - volatility regime, enabling steady equity appreciation and in turn, the rules - based strategies pegged to that tranquility.

It is impossible to pinpoint when the low - volatility regime will end, but as Howard Marks stressed in an Oaktree client letter last week: «It's better to turn cautious too soon... than too late after the downslide has begun.»

Investors, myself included, continue to marvel at the low volatility regime.

Beyond more sleepless nights, this shift in the volatility regime has implications for portfolio positioning.

Low volatility regimes lead to excessive risk taking and crowded positioning which leads to instability and high volatility regimes and on and on.

Investors, myself included, continue to marvel at the low volatility regime.

The current market and volatility regime we're in now suggests more uncomfortable downward moves may be ahead, which may make it harder for investors to hold on to a «buy - and - hold» strategy.

Certainly, 2017 was a low volatility regime.

Due to the power of compounding as illustrated in Exhibit 1 and the low volatility regime we have had in the past a couple of years, the S&P 500 VIX Short Term Futures Inverse Daily Index has outperformed the «true short» of its benchmark, the S&P 500 VIX Short - Term Futures Index.

As Artemis Capital's Chris Cole has said about the end of the low - volatility regime, February's VIX tantrum was likely «just an appetizer».