Tag - OIC

Advice to the Advisors

Upside Volatility on Wanted List | Sheaff Brock Institutional Group

Put Upside Volatility on the Wanted List?

Far from doing everything possible to avoid volatility, downside volatility is the only type to avoid. We should all want portfolios that have higher levels of upside volatility, Craig Israelson asserts. Traditionally, one advantage of building a broadly diversified portfolio is reduced volatility of returns. When higher standard deviation results in impressive upside performance, that is hardly something to be upset about, he observes. Well worth explaining to clients, the SPDR S&P 500 (NYSE symbol SPY) is the most widely traded contract [...]