Fixed Annuity Sales Continue to Soar While Massive Inflation Risks are Ignored
Bloomberg reports that there is continued strength in fixed and immediate...
Volatility is a measure of how the price of an asset – be it a stock, an option or a fund - changes. Volatility tracks how much the price moves and also how fast it changes. Beta is a commonly used statistical measure that represents volatility, and the higher beta is, the greater the risk. There’s usually a reference index such as the S&P 500 and if a stock perfectly tracks the index, it is said to have a beta of 1.0. If it changes more than the index, be it on the up or downside, it is a high beta stock. For example, a stock with a beta of 1.5 means that historically, it has moved 150% for every 100% move in the benchmark index. Mutual funds nowadays provide free volatility measures so you can get a good feel for how stable the fund is year in and year out.
Bloomberg reports that there is continued strength in fixed and immediate...
Annuities can be very effective in providing protection against market volatility.
There is a very good article on that site that discusses how owners of certain types of variable annuities have been insulated from many of the effects of the financial crisis. That article can be found by clicking here.