Sentences with phrase «when volatility»

Both groups tend to invest heavily when the market is comfortable (read: higher) and step back when Volatility brings his old friend Fear to the party.

When volatility inevitably picks up, the Bands will expand.

This is a typical scenario when volatility is diminishing progressively.

When volatility eases up for a moment, everyone gets uneasy because it's too quiet.

They are one of the reasons the stock markets have imposed «circuit breakers» to stop trading when volatility hits a certain point.

There have been some periods when volatility in fuel costs have had especially strong impacts on the mix of fuels used for generation:

So when volatility rose by more than 100 % on February 6, these funds did what they were designed to do: They had negative returns near or at -100 %.

In fact, when volatility is priced into that investment opportunity, whether it is a bond or an equity, but I'll stick to equities, because that's my area of expertise, that actually you can generate some very good rates of return indeed with very low risk.

Additionally when volatility is low, the portfolio manager buys protective put options to manage downside risk.

The aim is to keep portfolio risk constant by reducing it when market volatility rises and to increase portfolio risk when volatility falls (hence their term of DCR, which stands for Dynamic Constant Risk).

When the volatility wave is violent, steep, or exploding investors are afraid and willing to pay more to protect their portfolio.

When volatility and interest spreads are low for you, they are low for a lot of other people also.

When volatility is heightened, it makes it harder for in - and - out traders to make money.

You enlist a strategy designed to keep its powder dry and head above water during low volatility times, while insuring it will be involved when volatility spikes — through accepting many small losers until the winner comes.

Bailing out of the market when volatility hits can throttle long - term returns.

As a result, a strategy that reduces exposure in periods when volatility is high and increases exposure in periods when volatility is low would be more likely to outperform in risk - adjusted terms over the long run.

But I remain confident Record's current fundamentals (& subsequent technicals) will still propel the share price significantly higher from here (with a potential significant long - term AUME growth kicker if / when volatility elevates & global macro / FX policies diverge more radically).

Carry trades are play on low volatility; when volatility rises, the low interest rate currencies tend to do well because the ability to hedge bad currency outcomes is diminished, and carry trades collapse.

«When volatility rises, asset prices have to reprice lower,» he says, noting that «most investors today are skewed toward very risky portfolios.

Even more, when volatility strikes, its nice to know that volatility is not impacting the money that you can not afford to lose.

A financial plan can be your steadying hand when volatility triggers the impulse to just do something.

When volatility increased in February, some investors viewed this as a buying opportunity.

Don't do anything when volatility scares everyone else.

Stock traders who have been using approaches that assume low - volatility conditions will persist indefinitely (e.g., shorting VIX futures, selling option premium, or simply increasing long position size) need to be prepared for a changing of the market guard — or risk getting crushed when volatility doesn't immediately retreat after its next upward spike.

Vertical spreads are a well - known technique in options trading that are often used when the volatility of the underlying security (and thus the option premium) are very high.

Doing something (anything) different when a volatility event occurs undermines the credibility of the message that there's nothing new about it and nothing to do as a result.

When volatility is up, option premiums are up in general.

Unfortunately, no one has any way of knowing how long a calm market will last and when volatility will come back, and if you are invested in these preferred shares when volatility returns, you will underperform.

When volatility is too high, you give up significant profits before you can enter or exit positions.

Dual momentum works best when volatility is not too high.

However, we believe, when volatility and the eventual end to the bear market returns, the value of active investing will shine.

My personal opinion is that you should keep contributing to your retirement plans as you always have if and when volatility hits, but you may want to reroute all your new contributions to taxable accounts into safer havens — perhaps into online banks, certificates of deposit, bonds, and tax exempt mutual funds.

TAIL strategy offers the potential advantage of buying more puts when volatility is low and fewer puts when volatility is high.

However, investors should not be concerned about high multiples because when volatility is low, equity markets are much less likely to decline.

In the April 2016 version of their paper entitled «Volatility Managed Portfolios», Alan Moreira and Tyler Muir test the performance of a simple volatility timing approach that lowers (raises) exposure to risky assets when volatility of recent returns for those assets is relatively high (low).

Portfolios are designed to consistently reflect an investor's risk requirements in all markets and to outperform their benchmarks by protecting capital in two ways: first, under normal market conditions, with volatility within historical averages, diversification is used to control risk; second, when volatility is historically high or low, PŮR uses a proprietary SmartRisk ™ strategy.

SmartRisk ™ is a tactical asset allocation approach that automatically de-risks portfolios when markets are threatening (high volatility) and increases risk when volatility is low.

When volatility rises, they pounce.

Because option premiums are higher when volatility is higher, covered call writers have an opportunity to pocket some juicy premiums.

There are traders out there, and computers, that sell when the volatility spikes Remember, they can buy shares before the ban expires, and short them the day it does expire.

When volatility rises, nerds get hurt.

When volatility is high, it seems intuitively that the underlying will jump around, hence the delta will also jump around quite a bit, maybe going from + ve to - ve and vice versa very quickly.

What You Need to Know About Munis, When Volatility Taxes Your Patience... and Your Portfolio, Where to Find Decent Income, Without Indecent Risk, and When Home Is Where You Want Your Money to Be.

In this chart, we focused on the beginning of a FDAX futures session when volatility was usually high.

So when volatility rears its ugly head, our instinct is to take our money out of the market to safeguard it.

But when volatility is low and the market grinds upward, it is difficult to beat a strategy that remains fully invested and minimizes trading costs.

series, including When volatility taxes your patience and your portfolio and Where to find decent income without indecent risk.

I'll continue to keep my eyes open for safe, income - generating opportunities like this one — especially during earnings season, when high - quality dividend growers can temporarily go on sale and when volatility can send options premiums soaring.

At times when volatility spikes, pricing dislocations can occur in otherwise attractive assets.

However, this dynamic has flipped when volatility was increasing.