In general, the sign of the beta indicates whether, on average, the investment’s returns move with the market or in the opposite direction to the market. If the market rose by 10%, the investment would be expected to rise by 2. The article aims to state how investors can use beta factor analysis to their advantage when there are political uncertainties affecting markets. In practice it is rare to find negative beta stocks since they go against the trend of the market. An example of this can be found in the UK where two low beta FTSE stocks (Tesco and Centrica) outperformed the market in a falling market.INVESTMENT STRATEGIES:In world markets, beta factors can have a major influence on the investment strategies of investors. Or should investors move to alternative investments with negative beta factors such as gold and oil? After all in case of a conflict these commodities will almost certainly rise and will probably go against the trend of equity prices. However investors will do well if they include gold in their investment portfolios. This phenomenon has been evidenced by the collapse in recent years of the share prices of the dot com companies (e. The current political uncertainty has made things extremely difficult for investors.If Beta = 0 this means that investment’s returns are uncorrelated with those of the market. This would be the case if the investment were risk-free, but more generally this situation will arise when all of the investment’s risk is unsystematic.However the wheel has changed.g. In other words there have been significant movements (up or down) in share prices.A. Though some stockbroker firms calculate the beta factors of certain stocks quoted in their respective stock exchanges
https://www.weijiaelec.com/product/shunt/ investors have little access to these figures.Ever since the turn of the century, world stock markets have been very volatile. World markets are falling at a rapid pace. In addition to this shares in the gold sector have performed badly when compared to equities. If the analysis is to be believed then in times of a bull market (rising markets) investors should hold stocks with a high positive beta factor since they should outperform the market. Disclaimer: No responsibility for loss can be accepted to any person acting or refraining from acting as a result how does a latching relay work of material in this article. Yet despite these events there is very little emphasis placed on measuring the volatility of stocks. including shares with beta factors of over 1 times) have generally outperformed the market.C. Over the past twenty years when there was a strong equity bull market, the price of gold has fallen significantly. However in the past few years it is noticeable that in the political uncertainty that has arisen in the world that the price of gold has shown material gains at a time when equity markets have recorded sharp falls.).e.BETA FACTORS:The beta of an investment is a relative measure of the systematic risk of an investment. The answer will very much depend on how the current political situation develops.If 0 < Beta < 1 then investment’s returns will move, on average, in the same direction as the market’s returns, but to a lesser extent. A practical example of this was in the late 1990s concerning the dot com stocks.g. Hence we can summarise a number of situations:If Beta > 1 this means that the investment’s returns will move, on average, in the same direction as the market’s returns, but to a greater extent.25 for instance, would indicate that on average, the investment’s returns move one quarter as much as the markets do in the same direction.1 would indicate that on average, the investment’s returns move one tenth as much as the market’s do, but in the opposite direction. The prime example of this is gold. One possible sector that could consist of negative beta stocks is the gold industry that tends to go against the trend shown by equity markets.CONCLUSION:Beta factor analysis is a useful technique that has enabled many international investors to achieve satisfactory returns in the past. Yahoo, Amazon etc.com. ***** End of article ***** . In line with gold, the oil price has suffered over most of the past twenty years (at a time when equity prices were on an increase) and it is only in recent years that the oil price has shown a recovery. However during this time a number of alternative investments that have negative beta factors have appreciated in value.Publishing Guidelines: This article may be freely published so long as the author’s resource box, by lines, and copyright are included. British Telecom, Marconi etc. In more developed markets many stockbroker firms do have access to beta factors but it is only in recent years that investors have access to this information. However in times of bear markets (falling markets) then investors should target low beta stocks since they should outperform the market. The scale or value of the beta indicates the relative volatility of the particular stock.If Beta = 1 this means that the investment’s returns will move, on average, in the same direction as the market’s returns, and to the same extent. Unsystematic risk measures the specific risk of the company. If one looks at the trends in world markets then one can see that in a bull market those investors that have followed a selective aggressive portfolio (i.) and the sharp falls in the share prices of telecommunication stocks (e. Another commodity that has done well is oil that has seen a significant increase in its price per barrel over the past few months. We are now in the stage of a bear market. A beta of -0. All rights reserved***** Beginning of article *****BETA FACTORS: HOW THEY CAN BE USED IN THE CURRENT SITUATION?Comment by: Andy K George F.5% but on the other hand if the market fell by 10% the investment would be expected to 80a latching relay fall by only 2. If Beta < 0 then the investment’s returns will move, on average, in the opposite direction to the market’s returns, to a lesser extent if Beta > -1, to the same extent if Beta = -1, and to a greater extent if Beta < -1. At this time the bull market has reached its peak and those investors who held dot com companies (that had high positive beta factors) made excess returns and did far better than the relative index performances. In other words it measures the specific risk of the company’s shares relative to the market as a whole. What does beta factor analysis teach us about an investment strategy in this situation? Firstly, however good a company is it likely that in such circumstances most will encounter falls in their share prices.A beta of +0. Should they get out of world markets since a conflict will almost certainly mean falling equity prices. If the market rose by 10%, the investment would be expected to fall by 1%.USING BETA FACTORS IN THE PRESENT SITUATION:The current world political situation is probably the worst it is for many years. The aim of this article is to explain one method of measuring the volatility namely beta factors and how investors can interpret this information.TITLE: Beta Factors: How they can be used in the current situationAUTHOR: Andy GeorgeCONTACT: akgeorge@cytanet.5%
https://www.weijiaelec.com/product/shunt/ investors have little access to these figures.Ever since the turn of the century, world stock markets have been very volatile. World markets are falling at a rapid pace. In addition to this shares in the gold sector have performed badly when compared to equities. If the analysis is to be believed then in times of a bull market (rising markets) investors should hold stocks with a high positive beta factor since they should outperform the market. Disclaimer: No responsibility for loss can be accepted to any person acting or refraining from acting as a result how does a latching relay work of material in this article. Yet despite these events there is very little emphasis placed on measuring the volatility of stocks. including shares with beta factors of over 1 times) have generally outperformed the market.C. Over the past twenty years when there was a strong equity bull market, the price of gold has fallen significantly. However in the past few years it is noticeable that in the political uncertainty that has arisen in the world that the price of gold has shown material gains at a time when equity markets have recorded sharp falls.).e.BETA FACTORS:The beta of an investment is a relative measure of the systematic risk of an investment. The answer will very much depend on how the current political situation develops.If 0 < Beta < 1 then investment’s returns will move, on average, in the same direction as the market’s returns, but to a lesser extent. A practical example of this was in the late 1990s concerning the dot com stocks.g. Hence we can summarise a number of situations:If Beta > 1 this means that the investment’s returns will move, on average, in the same direction as the market’s returns, but to a greater extent.25 for instance, would indicate that on average, the investment’s returns move one quarter as much as the markets do in the same direction.1 would indicate that on average, the investment’s returns move one tenth as much as the market’s do, but in the opposite direction. The prime example of this is gold. One possible sector that could consist of negative beta stocks is the gold industry that tends to go against the trend shown by equity markets.CONCLUSION:Beta factor analysis is a useful technique that has enabled many international investors to achieve satisfactory returns in the past. Yahoo, Amazon etc.com. ***** End of article ***** . In line with gold, the oil price has suffered over most of the past twenty years (at a time when equity prices were on an increase) and it is only in recent years that the oil price has shown a recovery. However during this time a number of alternative investments that have negative beta factors have appreciated in value.Publishing Guidelines: This article may be freely published so long as the author’s resource box, by lines, and copyright are included. British Telecom, Marconi etc. In more developed markets many stockbroker firms do have access to beta factors but it is only in recent years that investors have access to this information. However in times of bear markets (falling markets) then investors should target low beta stocks since they should outperform the market. The scale or value of the beta indicates the relative volatility of the particular stock.If Beta = 1 this means that the investment’s returns will move, on average, in the same direction as the market’s returns, and to the same extent. Unsystematic risk measures the specific risk of the company. If one looks at the trends in world markets then one can see that in a bull market those investors that have followed a selective aggressive portfolio (i.) and the sharp falls in the share prices of telecommunication stocks (e. Another commodity that has done well is oil that has seen a significant increase in its price per barrel over the past few months. We are now in the stage of a bear market. A beta of -0. All rights reserved***** Beginning of article *****BETA FACTORS: HOW THEY CAN BE USED IN THE CURRENT SITUATION?Comment by: Andy K George F.5% but on the other hand if the market fell by 10% the investment would be expected to 80a latching relay fall by only 2. If Beta < 0 then the investment’s returns will move, on average, in the opposite direction to the market’s returns, to a lesser extent if Beta > -1, to the same extent if Beta = -1, and to a greater extent if Beta < -1. At this time the bull market has reached its peak and those investors who held dot com companies (that had high positive beta factors) made excess returns and did far better than the relative index performances. In other words it measures the specific risk of the company’s shares relative to the market as a whole. What does beta factor analysis teach us about an investment strategy in this situation? Firstly, however good a company is it likely that in such circumstances most will encounter falls in their share prices.A beta of +0. Should they get out of world markets since a conflict will almost certainly mean falling equity prices. If the market rose by 10%, the investment would be expected to fall by 1%.USING BETA FACTORS IN THE PRESENT SITUATION:The current world political situation is probably the worst it is for many years. The aim of this article is to explain one method of measuring the volatility namely beta factors and how investors can interpret this information.TITLE: Beta Factors: How they can be used in the current situationAUTHOR: Andy GeorgeCONTACT: akgeorge@cytanet.5%
コメント