One should note that often crude will top out a week or more before the stock market, but a short-term top in oil will increase the odds of a short-term market top.
With this said, it is important not to abandon longer term asset allocation strategies as a reaction to short-term market movements.
The fund's officials have defended the fund's performance, saying it is a long-term investor that shouldn't be judged by short-term market swings.
In the past several years, CIC has significantly reduced its holdings of public securities and accelerated a push into longer-term investments as the fund seeks to shield itself from short-term market swings.
While these investors could always sell their bonds as a result of changing market conditions, their approach is long-term and they are less likely to sell in reaction to short-term market fluctuations.
Neutral sentiment reached its highest level since March 24, as the recent market volatility has some individual investors questioning whether we are at a short-term market top.
The Portfolio Solutions 30-Year Market Forecast is provided for informational purposes only and not intended to be used for short-term market timing.
FORBES: Portfolio Solutions' 30-Year Market Forecast for Investment Planning (2013 edition)
Considerable international experience suggests that paying interest on reserves effectively manages short-term market rates.
No wonder then that investors are also uncertain, as reflected by the extreme short-term market volatility.
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In the short term the market might take a rest after the steep climb.
We went back and looked at the "VIX premium" at the last 4 short-term market bottoms.
Analysts have been calling for a short-term market pullback to alleviate the overbought condition for several weeks now.
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As a result, short-term market interest rates tend to follow its movement.
Short-term market bottoms also occurred when bullish sentiment fell to 22.2% on November 5, 2009, and 20.9% on July 8, 2010.
Whether short-term market momentum keeps it on that buy signal will determine whether the exit is signaled at that time or not.
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And we as traders only care about one thing: short-term market behavior.
Under this rule, if short-term market rates went up, deposits would be withdrawn from banks and thrifts and put in the money market.
Since Cox Communications, a cable firm, went private in 2004, it has benefited from the lack of both short-term market pressure and Sarbanes-Oxley-related interference.
Shares of LED equipment maker Aixtron are trading sharply lower after the company reduced its full year revenue guidance, citing increasing short-term market uncertainty.
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Thus the interest rate that the Fed pays should tend to put a floor under short-term market rates, including our policy target, the federal-funds rate.
The above factors have little to do with the short-term market gyrations, but it is certainly worth pondering for those with an intermediate- and longer-term perspective.
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States point out that prepaid-tuition plans have yet to miss any payments so far, in part because they have years to make up any short-term market losses.
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If that means more short-term market turbulence, so be it.
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In addition, the Bank of Japan and the Bank of Canada have also used their ability to pay interest on reserves to maintain a floor under short-term market rates.
The banks' larger Australian parents can always borrow cheaply in the short-term market in Australia, where no comparable rule exists, and pass on the proceeds in the form of longer-term lending.
As long as the U.S. economy keeps muddling through and the European Central Bank keeps the continent from falling into debt-induced chaos, the differences among central bankers could drive short-term market results.
When Stevenson helped start investment firm, Baupost Group, for example, he was looking for customers that wanted to preserve and grow capital over a long time rather than seeking to beat short-term market averages.
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Finally, to make a difference portfolio-wise trading IPOs, you typically have to be a darn good short-term market timer (tough to do) and hold a large enough allocation to make a difference (not typically a wise thing to do).
The key to withstanding the urge to respond to short-term market swings is establishing a portfolio with a level of risk and volatility that you can tolerate that diversifies investments across U.S. stocks, U.S. bonds, and international stocks at a minimum.
There is nothing earth-shattering about this concept, since most investors tend to view short-term market gyrations as little more than a popularity contest fueled by the relentless news flows and rampant speculations of the 24-hour-news cycles that have become our reality.
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