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Investors are bracing for a return to volatility when markets in the United States reopen on Tuesday as renewed gloom about the debt crisis in Europe threatens to end the calm that has prevailed on Wall Street in recent weeks.
Page B1 BRACING FOR MARKET OPENING Investors are bracing themselves for a return to volatility when markets in the United States reopen, as renewed gloom about the debt crisis in Europe threatens to end the calm that has prevailed on Wall Street in recent weeks.
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The question is, going forward, will REITs stay as high-beta financial stocks or will they return to steady, low volatility, growing cash dividend plays.
The fund's Sharpe ratio-a measure of returns relative to volatility-was three times better than the S&P 500′s and almost five times better than the Morgan Stanley World Index's in the past five years.
Volatility could return to equities because of the entrenched euro zone debt problems, the potential for a recession in Europe and concerns about economic growth in the United States.
While chasing recent hot performers does add to volatility in returns (something that hurt fund returns in a choppy 2004), what it does give is a great way to ride sector rallies.
Page A10 PUTIN DEFENDS DECISION Prime Minister Vladimir V. Putin confronted criticism over his decision to seek a return to the presidency, warning in a television interview of a return to the volatility of previous decades should Russia swerve from its current course.
MOSCOW — Prime Minister Vladimir V. Putin confronted criticism over his decision to seek a return to the presidency next year, warning in a television interview shown on Monday of a return to the volatility of previous decades should Russia swerve from its current course.
Volatility returned to what had been quiet markets.
Volatility returned to Wall Street on Monday, ending a four-day winning streak for stocks, as worries over the energy sector overshadowed hopes that banks would continue to bring in generous profits.
Volatility returned to Wall Street yesterday, sending stocks plunging as investors grew more uneasy about the economy and about whether the Federal Reserve will take steps to prevent credit market problems from spreading further.
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