During the early part of the s, aided somewhat by the loose monetary policy practiced by the Federal Reserve , the Dow made a notable rally attempt, though with significant volatility due to growing global concerns such as the European sovereign debt crisis , the Dubai debt crisis , and the United States debt ceiling crisis. Index Insight and Market Timing Tools: These strategies employ investment techniques that go beyond conventional long-only investing, including leverage, short selling, futures, options, etc. One week later, a point intra-day loss, owing to turbulence in the U.
The price shown here is "clean," meaning it does not reflect accrued interest. Monthly volatility refers to annualized standard deviation, a statistical measure that captures the variation of returns from their mean and that is often used to quantify the risk of a fund or index over a specific time period.
The higher the volatility, the more the returns fluctuate over time. Absolute return strategies seek to provide positive returns in a wide variety of market conditions. These strategies employ investment techniques that go beyond conventional long-only investing, including leverage, short selling, futures, options, etc. Arbitrage refers to the simultaneous purchase and sale of an asset in order to profit from a difference in the price of identical or similar financial instruments, on different markets or in different forms.
For example, convertible arbitrage looks for price differences among linked securities, like stocks and convertible bonds of the same company. Merger arbitrage involves investing in securities of companies that are the subject of some form of corporate transaction, including acquisition or merger proposals and leveraged buyouts.
Commodity refers to a basic good used in commerce that is interchangeable with other goods of the same type. Examples include oil, grain and livestock. Correlation is a statistical measure of how two variables relate to each other. Two different investments with a correlation of 1. The higher the correlation, the lower the diversifying effect. Currency refers to a generally accepted medium of exchange, such as the dollar, the euro, the yen, the Swiss franc, etc.
Market neutral is a strategy that involves attempting to remove all directional market risk by being equally long and short. Futures refers to a financial contract obligating the buyer to purchase an asset or the seller to sell an asset , such as a physical commodity or a financial instrument, at a predetermined future date and price.
Global macro strategies aim to profit from changes in global economies that are typically brought about by shifts in government policy, which impact interest rates and in turn affect currency, bond and stock markets. Hedge funds invest in a diverse range of markets and securities, using a wide variety of techniques and strategies, all intended to reduce risk while focusing on absolute rather than relative returns.
Leverage refers to using borrowed funds to make an investment. Investors use leverage when they believe the return of an investment will exceed the cost of borrowed funds. Leverage can increase the potential for higher returns, but can also increase the risk of loss. Managed futures involves taking long and short positions in futures and options in the global commodity, interest rate, equity, and currency markets. Precious metals refer to gold, silver, platinum and palladium. Private equity consists of equity securities in operating companies that are not publicly traded on a stock exchange.
Real estate refers to land plus anything permanently fixed to it, including buildings, sheds and other items attached to the structure.
Short selling or "shorting" involves selling an asset before it's bought. Typically, an investor borrows shares, immediately sells them, and later buys them back to return to the lender.
Volatility is the relative rate at which the price of a security or benchmark moves up and down. Volatility is also an asset class that can be traded in the futures markets. Tradable volatility is based on implied volatility , which is a measure of what the market expects the volatility of a security's price to be in the future.
Geared investing refers to leveraged or inverse investing. CSM rated 5 stars for the 3-year period ending March 31, among 99 U. The information contained herein: According to the China gold association, Chinas gold demand may be more than metric tons this year, up from Bloomberg -- Kinross Gold Corp.
China now holds 1, tons of gold in reserve. But a "paper gold" standard might be one way out of the global financial crisis. Zhou Xiaochuan governor of China's central bank said. Reuters - Gold is likely to hit new record highs, spurred by serious concern about the U. There was even a possibility, although not a probability, central banks, including China's, might start to switch from dollar holdings to gold..
Demand for gold will also rise as central banks become net buyers for the first time in 20 years, driven by developing countries, he added. Last year, world production of gold sank to the lowest since as reserves are depleted and few new sources of gold have been found. World mine production totaled tons in the second quarter, up 2. The new index is expected to be up and running by the end of the year.
Roughly a third of the proceeds were then invested in euros - which then proceeded to plummet. Trends indicate that international central bank's store of gold could fall further in future as yields received from the yellow metal decline, but is there another argument for investing in gold?
They anticipate the driving force to be a weaker US economy and strong demand from India. Benchmark gold futures closed at a year high on Friday because of a robust " International " demand for bullion. The viability of this proposal, after years of opposition, has been formally recognised by the staff of the IMF in a new paper. Two people invest their money in different financial instruments over 5 years. Dow Futures Opening Update as on 07 January Dow Futures Opening Update as on 04 January Dow Futures Opening Update as on 03 January Dow Futures Opening Update as on 31 December Dow Futures Opening Update as on 28 December Dow Futures Opening Update as on 27 December Dow Futures Opening Update as on 26 December Dow Futures Opening Update as on 24 December Dow Futures Opening Update as on 21 December Dow Futures Opening Update as on 20 December Dow Futures Live Market: Dow Futures Live Dow Futures Live contracts are one of the more popular index futures with an ever increasing number of beginning traders choosing it as the futures contract of choice.
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