Ulcer Index

An indicator developed by Peter G. Martin and Byron B. McCann that is used to measure the riskiness of investments such as securities, commodities, indexes, or mutual funds. It is created by factoring in the depth and duration of drawdowns from recent peaks. A large UI value indicates that the security represents undue risk and an investor who holds it will likely need to wait longer for the investment’s price to climb back to recent highs.

Related Terms

Mutual Fund

A mutual fund is an investment product that acts as a delegated investment manager. Mutual funds are an essential tool for individual investors looking to diversify their portfolios and capitalize on professional management of their assets. What Are Mutual Funds? A mutual fund is a type of investment vehicle that pools money from multiple investors […]

Structural-Demographic Theory (SDT)

Peter Turchin’s Structural-Demographic Theory (SDT) is a framework for understanding why societies periodically experience waves of political instability, such as revolutions, civil wars, and social unrest.

Dallas Fed Manufacturing Index

The Dallas Fed Manufacturing Index is a monthly survey conducted by the Federal Reserve Bank of Dallas.

Commodity

A commodity is a raw or unprocessed material that can be bought or sold and is used to make something else that eventually is consumed. Commodities are used as materials in the production of goods...

Risk Sentiment

Risk sentiment is a term used to describe how financial market participants (traders and investors) are behaving and feeling. What traders choose to buy or sell means balancing how much they are prepared to lose with how much they hope to earn. You can look at risk sentiment as the expression of traders’ and investors’ willingness to […]