finance terminology
Discussion
Well Bob (pronounced as only Blackadder can)
Listed shares would be two transactions a sell and a buy.
With Mutual Funds within the same family you would call and ask to "switch" eg all my shares in your oil fund to your gold fund.
PS you may want to hold off on selling oil as we haven't yet got into the winter heating period.
Could be a severe winter and result in lower reserves.
Listed shares would be two transactions a sell and a buy.
With Mutual Funds within the same family you would call and ask to "switch" eg all my shares in your oil fund to your gold fund.
PS you may want to hold off on selling oil as we haven't yet got into the winter heating period.
Could be a severe winter and result in lower reserves.
jeff m2 said:
Well Bob (pronounced as only Blackadder can)
Listed shares would be two transactions a sell and a buy.
With Mutual Funds within the same family you would call and ask to "switch" eg all my shares in your oil fund to your gold fund.
PS you may want to hold off on selling oil as we haven't yet got into the winter heating period.
Could be a severe winter and result in lower reserves.
haha, thank you. Listed shares would be two transactions a sell and a buy.
With Mutual Funds within the same family you would call and ask to "switch" eg all my shares in your oil fund to your gold fund.
PS you may want to hold off on selling oil as we haven't yet got into the winter heating period.
Could be a severe winter and result in lower reserves.
HandsomeBob said:
for example sell shares in a bad market such as oil to buy shares in gold (the good market)
Flight to quality I think would be the market behaviour that sums that up best.Typical behaviour in times of market stress or uncertainty is selling riskier assets and buying short dated govt bonds.....that's referred to as a flight to quality. In share terms selling say media companies and buying utilities.
HandsomeBob said:
AJS- said:
"Retrenching" would sound good.
This is perfect, thank you!The terms you're after could be;
- Tactical Switching
- Asset Allocation
- Rotation
If you are talking about entering and exiting the market as a whole this known as 'market timing'.
Try investopedia.com for help with finance terms you are unfamilier with.
HTH
Edited by DoubleSix on Thursday 21st November 14:51
Cheib said:
Flight to quality I think would be the market behaviour that sums that up best.
Typical behaviour in times of market stress or uncertainty is selling riskier assets and buying short dated govt bonds.....that's referred to as a flight to quality. In share terms selling say media companies and buying utilities.
Flight to safety is a better descripton. You can have high quality companies that still carry high risk. Quality and risk are not the same thing.Typical behaviour in times of market stress or uncertainty is selling riskier assets and buying short dated govt bonds.....that's referred to as a flight to quality. In share terms selling say media companies and buying utilities.
Selling media companies and buying utilities would be described as rotation from cyclicals to defensives.
I agree with 2x6.
Switching from one commodity market to another doesn't really say much about quality!
I do sometimes use the term "crap rally" when really what is happening is a risk rally from defensives to cyclicals.
It's unfair because some cyclicals are the highest quality companies you will ever encounter - they just happen to have more volatile earnings.
Switching from one commodity market to another doesn't really say much about quality!
I do sometimes use the term "crap rally" when really what is happening is a risk rally from defensives to cyclicals.
It's unfair because some cyclicals are the highest quality companies you will ever encounter - they just happen to have more volatile earnings.
DoubleSix said:
Cheib said:
Flight to quality I think would be the market behaviour that sums that up best.
Typical behaviour in times of market stress or uncertainty is selling riskier assets and buying short dated govt bonds.....that's referred to as a flight to quality. In share terms selling say media companies and buying utilities.
Flight to safety is a better descripton. You can have high quality companies that still carry high risk. Quality and risk are not the same thing.Typical behaviour in times of market stress or uncertainty is selling riskier assets and buying short dated govt bonds.....that's referred to as a flight to quality. In share terms selling say media companies and buying utilities.
Selling media companies and buying utilities would be described as rotation from cyclicals to defensives.
Media companies aren't viewed as cyclicals necessarilly either....industrials and chemical companies would be seen as much more cyclical. For example Sky is as a media company but it's actually become almost a utility in many households and indeed in times when the economy suffers people keep their Sky subscriptions as it's cheap entertainment vs going to the cinema for example. However it's business model is ultimately more risky than that of a utility.
Of course we do look at these things from our own particular feilds.
Personally, as a stockbroker with 15 years portfolio management under my belt I would argue that media is very much a cyclical and commonly regarded as such. In times of economic downturn one if the first things a business can cut back on is marketing, as such the WPPs of this world are vulnerable to reduced corporate spend. BSY are an interesting case but again depend on discretionary spend, people can very quickly cut back on non essential services when they feel the pinch. Not so with a true defensives such as a utility or beverage company.
Personally, as a stockbroker with 15 years portfolio management under my belt I would argue that media is very much a cyclical and commonly regarded as such. In times of economic downturn one if the first things a business can cut back on is marketing, as such the WPPs of this world are vulnerable to reduced corporate spend. BSY are an interesting case but again depend on discretionary spend, people can very quickly cut back on non essential services when they feel the pinch. Not so with a true defensives such as a utility or beverage company.
DoubleSix said:
Of course we do look at these things from our own particular feilds.
Personally, as a stockbroker with 15 years portfolio management under my belt I would argue that media is very much a cyclical and commonly regarded as such. In times of economic downturn one if the first things a business can cut back on is marketing, as such the WPPs of this world are vulnerable to reduced corporate spend. BSY are an interesting case but again depend on discretionary spend, people can very quickly cut back on non essential services when they feel the pinch. Not so with a true defensives such as a utility or beverage company.
True but the evidence regarding BSY is contrarian to that. Sales in 2007 were £4.5bil and have grown every year since (including 2008 and 2009) and are currently £6.7bil. Anything but discretionary it seems. Saying media is cyclical is outdated IMHO it's an incredibly broad sector, WPP is broadly an advertising play and is clearly quite cyclical but it is also a sector with incredibly high growth companies too...social media for example.Personally, as a stockbroker with 15 years portfolio management under my belt I would argue that media is very much a cyclical and commonly regarded as such. In times of economic downturn one if the first things a business can cut back on is marketing, as such the WPPs of this world are vulnerable to reduced corporate spend. BSY are an interesting case but again depend on discretionary spend, people can very quickly cut back on non essential services when they feel the pinch. Not so with a true defensives such as a utility or beverage company.
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