"Volatility spikes" refers to sudden and significant changes in the price or value of something, indicating an increase in its instability or unpredictability.
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And while short - volatility ETFs can benefit from the same dynamic, their investors can get wiped out
when volatility spikes.
Importantly, while that was taking place the last time we
saw volatility spike like that, you know, we were facing recession — global recession.
But that sacrifice is worth it, says Egan, in case of economic shocks, such as
market volatility spikes, or a U.S. dollar plunge.
In the week ending 23 February, 2018, more hedge funds came forth sharing they were on the right side when
volatility spiked in early February.
That's certainly what investors saw in February, when the stock market had its first 10 % - plus correction in two years
as volatility spiked and moderate wage growth raised fears of inflation and higher interest rates.
The risk
of volatility spikes and liquidity shortages is rising, and it could get worse with new «quantitative tightening» policies from central banks.
The October 2017 stability report from the IMF note «
during volatility spikes, these [volatility targeting] strategies can lead to significant asset sales to pare back leverage.
We also do not rule out short - lived
volatility spikes on risks such as further U.S. political turmoil.
Barclays Bank added to its iPath roster of volatility - linked ETNs with the launch of its first dynamic volatility strategy, designed as a tool for investors to benefit
from volatility spikes while managing the roll cost during calm markets.
The volatility on silver had been quite low before
volatility spiked after the Fed Meeting — that was quite a successful position.
Volatility spiked at the beginning of the month as stocks began the second - quarter on the back foot.
There are only 11 occurrences, which means that
volatility spikes like the one of last Wednesday occurred only about 0.16 % of the time.
I expect that we'll gradually cover portions of the short - call option side of our hedges (leaving the defensive puts in place) if the market continues lower without a
significant volatility spike.
In times like these, we focus on trading around core positions while looking to take advantage of what happens in quant -
driven volatility spikes — we look to pick off opportunities one by one as they present themselves.
Related: OPEC Circus Sees Oil Volatility Spike
Given that we're in the sixth year of a bull market, investors are understandably getting nervous, particularly with rate and
currency volatility spiking.
Most equity markets in the region were relatively flat over the past year, but SG offered its clients the opportunity to
capture volatility spikes with its Vinci Index, which has a negative correlation with equities.
Respondents» top three portfolio risk concerns for 2018 are interest rates (62 per cent), asset
price volatility spikes (53 per cent) and liquidity (32 per cent).
If you eliminated the tiniest (i.e. the smallest 10 or 20 percent), much of the return disappeared, and
volatility spiked markedly.
On December 18, Larry Connors taught a
new Volatility Spikes course and this is your opportunity to learn this strategy before it is no longer available the general public.
Volatility Spikes ™ is the one strategy that Larry considers to be the strongest he has ever created.
In times of
market volatility spikes, quality factor strategies have historically behaved defensively, which may provide opportunities for strong outperformance,» says Fiona Bassett, Global Co-Head of Passive Asset Management.
The «Mad Money» host argued that these trading instruments made the sell - off significantly worse by forcing the hedge fund managers who bought them to cover their losses
when volatility spiked.
Volatility spiked at the beginning of the month as stocks began the second - quarter on the back foot.
«As soon as we broke the 50 - day moving average... we
saw volatility spike,» said Jeff Kilburg, CEO of KKM Financial.
«People looking for a big bounce in the dollar from
the volatility spike must be feeling pretty depressed right now,» said Kit Juckes, chief FX strategist at Societe Generale in London, referring to the dollar's losses in recent sessions.
Theoretically, these likely would be the stocks that would hold up the best when the market sells off and
volatility spikes.
With political uncertainty on the rise in D.C., will market
volatility spike?
Volatility spiked in February, reaching an intraday high unseen since the 2008 financial crisis.
Volatility spiked in February and March but has now leveled off.
VXX does go up occasionally when
volatility spikes, but then it goes back to being expensive to hold again.
With the Dow deep in the red and
volatility spiking, «sell in May» and «avoid the midterm election cycle» sound like timely advice.
China — the world's second - largest economy — grew at its slowest annual pace in approximately a quarter - century in 2015, with China's stock market
volatility spiking, and the renminbi sharply depreciating versus the U.S. dollar.
On 15 October, stock market
volatility spiked to levels not seen in more than two years.