Sentences with phrase «us equity valuations»

She says she is not worried about equity valuation levels or inflation and is telling investors to stay invested.

At the same time, the «cliff deal» removes a layer of uncertainty, which should also help to compress risk spreads and support equity valuations.»

Sara Silverstein: So just to start, what do you think about pressure on equity valuations at the levels that they are at right now?

Against the backdrop of current macroeconomic trends — European sovereign debt, the continued monetization of U.S. obligations, the prospect of a hard landing in China — another phenomenon is quietly playing out here in Canada: a continued strengthening of merger - and - acquisition activity in our mining sector, which could boost what are now severely compressed equity valuations.

Equity valuations will take time to moderate, and investors will have to guide their expectations lower.

Also known as convertible debt, convertible notes are used primarily for seed funding, and are useful for situations where you may be hesitant to set an equity valuation too soon.

At these high equity valuations, that could really scare investors.»

Yet the current situation actually creates a double positive for stocks: interest rates are likely to stay lower for longer, which helps support equity valuations while also providing investment - grade issuers with the ability to borrow cheaply and increase shareholder value.

With equity valuations at historic highs and government bonds barely eking out a return, junk bonds offer solid yields at a good price, he reasons.

As a result, we do not see equity valuation metrics falling back to historical averages.

Viewed through this lens, equity valuations are not that extreme, we believe.

«The absence of adequate market access for crude oil out of Canada has repeatedly impeded equity valuations and is once again driving a wedge between the performance of Canadian investments and global alternatives,» it said.

As discussed last month, one phenomenon of the post crisis environment is that equity valuations now have a tendency to co-move with volatility.

After all, the currency fueling much of the deal - making — those companies» inflated equity valuations — is now depressed, and acquisition targets may prefer to hold out for a higher price.

«Now when I talk to those same investors, they basically say if you outspend cash flow on stupid investments and destroy capital, I'm not just going to be mad at you, I will punish you and I will destroy your equity valuation, and I will never ever own your stock again,» he said.

This helps to support excess liquidity and equity valuations.

Yet Franklin Equity Group's Coleen Barbeau thinks equity valuations, particularly in the US market, already reflect that rosy outlook.

«As equity investors reassess the Fed policy outlook, this forces a reassessment of equity valuations as well.»

To the extent that lower Treasury yields are even weakly associated with higher equity valuations, recognize that this effect is also expressed over time as lower subsequent stock market returns.

Along with the steepest equity valuations in U.S. history outside of 1929 and 2000 (on measures that are actually reliably correlated with subsequent market returns), private and public debt burdens have reached the most extreme levels in history.

Financial theory does suggest that equity valuations, i.e. the price you pay for a dollar of earnings, should drop as the interest rate used to discount that earning rises.

That said, if bond yields were to climb substantially, let's say towards 4 %, history suggests that the negative relationship between bond yields and equity valuations will begin to reassert itself.

A reminder on interest rate front - it's essential to recognize that if one believes depressed interest rates «justify» extremely rich equity valuations, what one is really saying is that depressed interest rates «justify» dismal subsequent returns on stocks.

But stock performance has actually outpaced gains in earnings, and as a result, US equity valuations appear stretched as we begin 2018 — for example, the S&P 500's price - earnings ratio is well above longer - term historical averages.

«Absent material equity valuation improvements for Ares and KKR, we expect further conversions of Fitch - rated alternative investment managers to be decreasingly likely, given that the remaining managers generally have more incentive income which would not benefit from the lower tax rate,» said Meghan Neenan, head of North American Non-Bank Financial Institutions at Fitch.

The averages above do hide a significant amount of variation in returns, and the direction of equity valuations at any given point in time also matters.

Data provided represents a compilation of information from leading private company financial research... Continue reading GrowthCap's Growth Equity Valuation Report: B2B Software →

But the correlation between sterling and the FTSE 100 is breaking down as the pound's fall — now steadied — has become baked into equity valuations.

The report focuses on private company growth equity valuation and financing data, as well as the top investors and companies that participated in transactions throughout 2014 in the B2B software industry.

But private equity valuations are too high now, and the government doesn't want foreigners in the distressed real estate market.

At this point, obscene equity valuations are already baked in the cake on valuation measures that are reliably correlated with actual subsequent stock market returns.

Our view for broader and stronger economic growth this year, with only slightly higher interest rates from current levels, is favorable for equity valuations — especially after the latest decline in equity prices.

We allow that short - term interest rates may be pegged well below historical norms for several more years, and we know that for every year that short - term interest rates are held at zero (rather than a historically normal level of 4 %), one can «justify» equity valuations about 4 % above historical norms — a premium that removes that same 4 % from prospective future stock returns.

The current environment of low interest rates and elevated equity valuations has many investors in a tight spot, as return expectations are lower than usual for both bonds and domestic stocks.

In its detailed 137 - page report, Equity Valuation and Consulting advised the government that these public assets would command a $ 128 million sale price if exposed to the markets for six to nine months.

Many factors have weighed on the markets this year including a Greek saga, Federal Reserve policy changes, and lofty equity valuation levels...

Yes, yes, yes, yes, zero interest rates have encouraged investors to drive equity valuations to historical extremes.

The demographic sweet spot for rising equity valuations is as people begin to accumulate assets, begin to save and invest for their future.

Equity valuations are high after a 6 year extraordinary bull market.

This chart from CLSA (thanks Gary) puts Japanese equity valuation in perspective.

He teaches the corporate finance and equity valuation courses in the MBA program.

Equity valuation worsened a little last week as U.S. inflation rose from 1.6 % in January to 2.0 % in February, a level that looks like a strong anchor for inflation (see below).

I have several models that take the measure of equity valuations, and they all reach the same conclusion — this market is stretched.

The reality is that when equity valuations get on the high side, nervous investors tend to hold on as long as they can, waiting for reasons to sell to show up.

So there's again a difference in safe withdrawal rates depending what are equity valuations.

This understanding allowed policymakers to project changes in financial conditions (short - term borrowing cost, long - term credit spreads, equity valuation, and exchange rate), which would elicit reactions from the real economy.

For example, our effort to carefully account for the impact of foreign revenues, and to create an apples - to - apples measure of general equity valuation led us to introduce MarketCap / GVA, which is better correlated with actual subsequent 10 - 12 year market returns than any of scores of measures we've studied.

Stronger growth, higher inflation and low equities valuations make a compelling case for a fresh look at Japan.

Many investors are skeptical about equity valuations after an eight - year rally.

Any policies that reverse this trend — or labor shortages causing wages to spike — could erode margins and equity valuations.