Sentences with phrase «as inflation risk»

While bonds are less volatile than stocks, the risks associated with financial repression (such as inflation risk) can be more damaging to the former.

Fixed income securities also carry other risks, such as inflation risk, liquidity risk, call risk, and credit and default risks.

Not exact matches

In its latest Annual Report, it argued that «even if inflation does not rise, keeping interest rates too low for long could raise financial stability and macroeconomic risks further down the road, as debt continues to pile up and risk - taking in financial markets gathers steam.»

In June 2008, as the price of gas went above $ 4, Buffett said «exploding» inflation was the biggest risk to the economy.

Powell in statements throughout the year, culminating with his recent Senate confirmation hearing, has been clear he sees little risk of inflation that would prompt the Fed to raise rates faster than expected, and takes weak wage growth as a sign that sidelined workers remain to be drawn into jobs.

If the Fed raises rates this year, as most of his colleagues expect, «things could go okay, but you are creating a risk of further declines in where market - based inflation expectations are, basically to the credibility of our inflation target, and I think you are creating downside risks our pursuit of our employment mandate.»

Lakos - Bujas said he and his team view «normalizing inflation and declining global deflationary risks as a positive for equities at this stage of the cycle, and believe there has been some overreaction to inflation headlines lately.»

It means an investment perceived as «risk - free» now offers limited downside risk and positive after - inflation yields.

Though all measures of inflation were coming down as summer turned to fall and the economy clearly was slowing following a July brush with $ 4 - a-gallon gasoline, the FOMC decided to hold the fed funds rate at 2 %, concluding that «the downside risks to growth and the upside risks to inflation are both of significant concern to the committee.»

The dead - body business is seen as highly predictable, uncorrelated with other industries, inflation - linked, low - risk and high - margin.

As it turned out, the upside risks to inflation didn't materialize.

You're still dealing with all of the same bond risks as every other investor when you buy individual bonds — interest rate risk, credit risk, inflation risk, duration risk, default risk, etc..

Inflation risk: is the chance that cash flow from an investment won't be worth as much in the future because of changes in purchasing power due to iInflation risk: is the chance that cash flow from an investment won't be worth as much in the future because of changes in purchasing power due to inflationinflation.

This means higher inflation expectations would be perceived as a problem for risk markets.

Despite the slump in inflation expectations and other signs that U.S. growth remains below trend, I don't view deflation as a real risk.

Under certain conditions, as long as monetary policy has a larger effect on inflation than it does on financial stability risk and macroprudential policy has a larger effect on financial stability risk than it does on inflation, there would be no need, in theory, for the agencies responsible to coordinate their actions explicitly.

We see the risks around the profile for inflation as roughly balanced.

Accordingly, the Governing Council agreed that acting at this time was consistent both with the Bank's primary mission — the pursuit of its inflation target — as well as helping to manage financial stability risks, even if there could be some increase in financial vulnerabilities in the process.

Though on a smaller scale and in a subtler manner, it has in many ways taken a page from the United States Federal Reserve's playbook for the 2008 financial crisis, which has been roundly criticized in Europe as a reckless bailout that risks setting off uncontrolled inflation.

Our long - term forecasts are based on our assessment of current valuation measures, economic growth and inflation prospects, as well as historical risk premiums.

These countries share other weaknesses as well: excessive fiscal deficits, above - target inflation, and stability risk (reflected not only in the recent political turmoil in Brazil and Turkey, but also in South Africa's labour strife and India's political and electoral uncertainties).

If there is a danger that monetary policy will be seen as «too difficult», there is also a risk that too much will be expected of it or, at least, that its success or failure will be judged against an impossibly - high standard: it can't cure the business cycle; it can't reduce inflation costlessly; and it can't be operated with surgical precision.

World growth will remain low on average but negative in the UK and Europe; price inflation will remain sufficiently subdued for a while longer so as to impose no constraint on monetary expansion; central banks will sustain a regime of negative real interest rates and rapid monetary expansion; the risk of a eurozone collapse is off the table for now; finally, stock markets should continue to perform better than expected, even though the four - year old cyclical bull market is long by historical standards.

Fixed income investments entail interest rate risk (as interest rates rise bond prices usually fall), the risk of issuer default, issuer credit risk and inflation risk.

International investments, particularly investments in emerging markets, may carry risks associated with potentially less stable economies or governments (such as the risk of seizure by a foreign government, the imposition of currency or other restrictions, or high levels of inflation or deflation), and may be or become illiquid.

The thrust of his argument is that interest rates need to go up as the Fed's been «adding enormous policy accommodation over the past several years» and, even while they've long been missing their inflation target on the downside, there's a risk of getting «significantly behind the curve.»

«As the downside risks to the inflation outlook dissolve, the Bank of Canada is likely to re-establish a tightening policy bias over the course of this year - we expect the first hike to the overnight rate in the second quarter of 2015,» said Wright.

Moreover, as inflation is less demand driven and the result of external factors (Currency, commodity prices), raising interest rates risks plunging the economy into a recession.

March: «In these circumstances, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected.»

I view the underlying insight as a healthy realization by market participants that the risks are two - sided: Unsustainably strong growth that leads to excessive inflation or financial imbalances is now as much a risk as growth that falls short.

Inflation is the biggest risk to lower interest rates, as I've detailed in the past.

Given the absence of a public trading market of our common stock, and in accordance with the American Institute of Certified Public Accountants Accounting and Valuation Guide, Valuation of Privately - Held Company Equity Securities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the option grants involve illiquid securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic outlook.

These risks include the downside ones of a Chinese yuan devaluation and a U.K. exit from the European Union, as well as the upside risks of an emerging market rebound or a moderate rise in inflation expectations on improving growth prospects.

As the Fed tapers, many observers worry about the effect on the stock market, while others are worried about the risk of inflation or deflation and everybody is worried about the effect of higher interest rates on economic growth and for the bond market.

The outlook for inflation is subject to a number of risks that the Bank identifies as important.

Moreover, core inflation moved ahead of its level of 6 months ago, and leading economic measures continued to slip (though we don't see them as being indicative of recession risk at present).

However, few economists expect any mention of trade risks in the Fed's policy statement on Wednesday and see any tweaks as likely to be confined to upgrading the language on inflation to reflect that it is now effectively at target.

U.S. stocks traded in record territory on Wednesday as the risk of persistently weak inflation hung over the Federal Reserve's most recent policy meeting.

Our mindful examination of inflation validates the conclusions from previous articles that in most cases, stocks are the best option to deal with routine inflation as well as the more infrequent true risk of rapid unexpected changes in inflation.

In today's UK market, the cap rate distribution curve has flattened out, consumer and wage inflation is out of synch, and investors are not getting paid enough to take core risk as there is little prospect for net operating income (NOI) growth in the current lease regime.

In the most recent period, following the tightening of monetary policy in May, market interest rates declined for a time as participants assessed that the cumulative tightening over the previous six months might have been sufficient to reduce the risks on inflation.

In a late - October statement, the Fed dropped prior references to the risks to US growth and inflation stemming from skittish financial markets and a sluggish global economy, and it singled out solid increases in the domestic US economy in areas such as spending and investment, along with further improvement in the housing market.

The November Statement identified the pick - up in world oil prices in the second half of 2004 as the major risk to the inflation outlook, and the higher level of oil prices did contribute to the upstream inflationary pressures in producer prices in the December quarter.

Therefore, investors act as agents to transmit changing policy expectations and changing inflation risk premiums into the real economy by adjusting their risk exposures across the yield curve.

As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weaknesAs usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weaknesas measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weaknesas measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.

«Any further stimulus only increases the long - term risk of inflation, which we already view as high.»

Investing in currency involves additional special risks such as credit, interest rate fluctuations, derivative investment risk, and domestic and foreign inflation rates, which can be volatile and may be less liquid than other securities and more sensitive to the effect of varied economic conditions.

Financial forecasts, rates of return, risk, inflation, and other assumptions may be used as the basis for illustrations in this analysis.

«Inflation is not likely to get out of hand, as it did back then, but the risks that it could are definitely escalating,» he said.

But as risk aversion subsides, and investors return to corporate bonds and other assets, investors are now calculating the risks of renewed dollar inflation.