Low risk, high reward: How the 'volatility anomaly' can help you beat markets

  • 📰 nationalpost
  • ⏱ Reading Time:
  • 43 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 80%

Canada Headlines News

Canada Latest News,Canada Headlines

Beat the market, and sleep well at night too

The “fear gauge,” maintained by CBOE Global Markets, has since come down to the low 20s, but those factors continue to contribute to market volatility, along with worries about another potential COVID-19 surge this spring, as seen in Europe and China.Article contentDuring market corrections, expert advisors like Willis remind people to keep the low-volatility anomaly in mind. Less volatile stocks don’t fall as violently as stocks with higher volatility.

But market participants are human, and humans don’t always act rationally — especially when it comes to decisions about money. Investors are therefore prone to making mistakes.Article content“Investors look at other stocks in the past that were high earners, and so they look for another stock that they think could be a high earner,” Willis said. “This can lead them to decline, not grow.”This anomaly is especially important for investors to consider right now.

Good examples of mature mega-cap tech stocks include Microsoft, Intel and Cisco Systems. They all have relatively low volatility and offer healthy dividends to boot.Willis doesn’t want investors to become scared of investing altogether. For conservative investors looking for steady long-term gains, the low volatility anomaly provides a good basis for a winning strategy.

Source: News Formal (newsformal.com)

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 10. in CA

Canada Latest News, Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Vancouver’s low-density neighbourhoods bypassed in development plansQuestions are being raised as to why the areas in Vancouver targeted in the development plans are the ones already vibrant with affordable housing
Source: globeandmail - 🏆 5. / 92 Read more »

Editorial | Canada must move faster to pay our debt to Afghan refugeesCanada must move faster to pay our debt to Afghan refugees. There is more evidence that Canada needs to move faster to receive those who risked their lives to help us in Afghanistan. StarEditorial We don't owe them anything, all the young Canadians that gave their lives should be enough. They got paid handsomely to do a job, we owe them nothing Canadian government must FIRST take care business inside here! Control/reducing that monstrous inflation!
Source: TorontoStar - 🏆 60. / 55 Read more »

Blue Jays' depth steps up (with Vlad) to deliver win over AthleticsWith the Toronto Blue Jays battling the injury bug, several bench players stepped up to help the team beat the Oakland Athletics 4-1 on Friday night at Rogers Centre. (bnicholsonsmith) bnicholsonsmith bnicholsonsmith Hurt already? Soft.
Source: Sportsnet - 🏆 57. / 59 Read more »

As Halifax turns into a housing hotspot, many look to Ottawa for relief | CBC RadioHalifax has become the centre of a housing affordability crisis in Atlantic Canada, and many are hoping that new money from the federal government can help cool down the red-hot market. You can thank Mr. Trudeau for this. The pandemic supports ( not CERB, that was needed and good) made a lot of people rich and more rich than theybalreay were. Of course the Bank of Canada and their free money rates decimated the next gen from ever owning a house
Source: natnewswatch - 🏆 58. / 59 Read more »

Opinion | The Faceoff: Digitization primed alternative lender Home Capital Group for the pandemic shift and a growing market, however First National is exposed to less riskThe Faceoff: Digitization primed alternative lender Home Capital Group for the pandemic shift and a growing market, however First National is exposed to less risk
Source: TorontoStar - 🏆 60. / 55 Read more »

Ford open to extending mask mandate for high-risk settings, advises people to ‘be cautious’ over long weekendOntario Premier Doug Ford said Thursday that he is open to extending remaining mask mandates beyond a previous April end date if the chief medical officer of health advises it. Endless timeloop everybody. 🤔👇 Masks don't work so don't worry about it.
Source: CP24 - 🏆 30. / 67 Read more »