Downside

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Downside

In technical analysis and fundamental analysis, an estimate of the potential percentage or dollar amount by which a security may fall in the near-term. There are various methodologies used to determine an upside. For example, an analyst may look at recent trends on a bank stock and believe that it has the potential to fall in value by 15% in the next few weeks. This might be an indication for investors to sell the stock. Downside is also known as downside risk. See also: Upside Potential.
References in periodicals archive ?
Downside risks to the euro area credit outlook remain material in Moody's view.
Shirai also said the main downside risks are possible downward adjustments related to overseas economies, such as Europe's sovereign debt crisis, slowing Chinese growth and the looming US fiscal cliff.
Global growth remains modest and downside risks are still elevated," the finance ministers and central bank governors of the Group of 20 advanced and major developing countries said in a joint statement released after their two-day meeting in Mexico City.
The retailer's risk aversion is modeled by the Value-at-Risk (VaR) approach with the downside risk constraint.
For quite sometime to come, we will have to worry about the downside risks to the economy,'' he added.
However, if we realised a downside risk, that would be a more significant event.
The continued negative outlook for the UK banking sector is driven by the UK's uncertain economic prospects, pressure on profitability and downside risks for asset quality," added Elisabeth Rudman, a Moody's senior vice-president.
While there's still a lot of downside risk in the outlook, the data still suggests that the recovery is pretty healthy, especially with the strong October jobs report.
The bank said that downside risks to the global economy appeared to have abated, particularly in China, Europe and the United States.
Market sentiment in Tokyo dampened after the Fed issued a more strongly worded statement than its previous policy meeting in August and said, ''There are significant downside risks to the economic outlook, including strains in global financial markets,'' brokers said.
The Committee perceives the upside and downside risks to the attainment of both sustainable growth and price stability for the next few quarters to be roughly equal.