Diversification works because, in general,
asset prices do not move perfectly together.
Rising
asset prices do not stimulate the economy much.
The firm believes asset prices don't simply move based on fundamentals, but also based on shifts in investor preferences for those assets.
I should be clear that none of this should be taken as implying that expectations or
asset prices do not matter.
Not exact matches
Before the financial crisis, most every economy was
doing well, albeit on a bubble of debt and inflated
asset prices.
Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft; 6) the effect on aircraft demand and build rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future
pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan
assets and the impact of future discount rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase
price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness of any interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of
doing business internationally, including fluctuations in foreign current exchange rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
We don't want to fan debt - financed appreciation in the
price of a major
asset because when the escalation reverses, it can trigger a self - feeding spiral of debt defaults.
I love that word, because that's what we're trying to
do with the great
assets we have — the brand, the
pricing, the product and the dealer network.
In the opinion of the Company's management, adjusted book value per share is useful in an analysis of a property casualty company's book value per share as it removes the effect of changing
prices on invested
assets (i.e., net unrealized investment gains (losses), net of tax), which
do not have an equivalent impact on unpaid claims and claim adjustment expense reserves.
The New Yorker noted that even Prime Minister Justin Trudeau has indicated caution in
doing anything that would affect the
price of many households» most valuable
asset.
When asked when central banks will take cryptocurrencies seriously, he said: «We don't have to, in the sense that we don't have responsibility or even instruments that point to particular
prices of particular
assets, that is certainly not the role of central banks.»
What that means is that you are in an environment that is going to have further trouble in terms of investment returns that are in areas that are based on economic growth and areas that
do relatively well like bonds... Broadly speaking, I think that investors should be looking for lower
prices on most risk
assets in these developed countries with the exception of Japan.»
When
prices collapsed, so
did demand because too many consumers were stuck with debts worth more than their
assets.
Those wild
price swings are partly to
do with the fact that cryptocurrencies aren't backed by an
asset.
Actual results, including with respect to our targets and prospects, could differ materially due to a number of factors, including the risk that we may not obtain sufficient orders to achieve our targeted revenues;
price competition in key markets; the risk that we or our channel partners are not able to develop and expand customer bases and accurately anticipate demand from end customers, which can result in increased inventory and reduced orders as we experience wide fluctuations in supply and demand; the risk that our commercial Lighting Products results will continue to suffer if new issues arise regarding issues related to product quality for this business; the risk that we may experience production difficulties that preclude us from shipping sufficient quantities to meet customer orders or that result in higher production costs and lower margins; our ability to lower costs; the risk that our results will suffer if we are unable to balance fluctuations in customer demand and capacity, including bringing on additional capacity on a timely basis to meet customer demand; the risk that longer manufacturing lead times may cause customers to fulfill their orders with a competitor's products instead; the risk that the economic and political uncertainty caused by the proposed tariffs by the United States on Chinese goods, and any corresponding Chinese tariffs in response, may negatively impact demand for our products; product mix; risks associated with the ramp - up of production of our new products, and our entry into new business channels different from those in which we have historically operated; the risk that customers
do not maintain their favorable perception of our brand and products, resulting in lower demand for our products; the risk that our products fail to perform or fail to meet customer requirements or expectations, resulting in significant additional costs, including costs associated with warranty returns or the potential recall of our products; ongoing uncertainty in global economic conditions, infrastructure development or customer demand that could negatively affect product demand, collectability of receivables and other related matters as consumers and businesses may defer purchases or payments, or default on payments; risks resulting from the concentration of our business among few customers, including the risk that customers may reduce or cancel orders or fail to honor purchase commitments; the risk that we are not able to enter into acceptable contractual arrangements with the significant customers of the acquired Infineon RF Power business or otherwise not fully realize anticipated benefits of the transaction; the risk that retail customers may alter promotional
pricing, increase promotion of a competitor's products over our products or reduce their inventory levels, all of which could negatively affect product demand; the risk that our investments may experience periods of significant stock
price volatility causing us to recognize fair value losses on our investment; the risk posed by managing an increasingly complex supply chain that has the ability to supply a sufficient quantity of raw materials, subsystems and finished products with the required specifications and quality; the risk we may be required to record a significant charge to earnings if our goodwill or amortizable
assets become impaired; risks relating to confidential information theft or misuse, including through cyber-attacks or cyber intrusion; our ability to complete development and commercialization of products under development, such as our pipeline of Wolfspeed products, improved LED chips, LED components, and LED lighting products risks related to our multi-year warranty periods for LED lighting products; risks associated with acquisitions, divestitures, joint ventures or investments generally; the rapid development of new technology and competing products that may impair demand or render our products obsolete; the potential lack of customer acceptance for our products; risks associated with ongoing litigation; and other factors discussed in our filings with the Securities and Exchange Commission (SEC), including our report on Form 10 - K for the fiscal year ended June 25, 2017, and subsequent reports filed with the SEC.
Besides Mr. Drexler, major (5 % or greater) shareholders in the firm, as of the annual proxy in April, include FMR LLC (which includes the Fidelity Contrafund), Baron Capital Group, BlackRock, and T Rowe
Price, all of whom voted in favor of the directors up for election as well as the other management proposals — and Columbia Wanger
Asset Management (whose parent Ameriprise,
did not return requests for information).
Get people to throw money behind an
asset or opportunity they don't understand all that well; hope the
price of the mostly worthless junk inflates; cash out.
That means that for the
assets that
do get bought, higher
prices are being paid.
«The
price of some of these
assets has increased to the point that we don't feel like we can create value for Novartis shareholders,» he said.
Lower interest rates will
do nothing but inflate
asset -
price bubbles if there is reduced demand for goods and services.
Frothy
asset prices As the WGC points out, not only
did asset prices hit multi-year highs around the world in 2017, but the S&P is still sitting at an all - time high.
The financial sector wins at the point where you don't see that the
prices that the banks are inflating are
asset prices — real estate
prices, bond and stock
prices — and that the role of commercial banks is to increase the power of wealth over the rest of society, over labour, over industry, to create a new ruling - class of bankers that are even more heavy than the landlords that were criticised in the last part of the 19th century.
Allergan Plc's chief executive on Monday said he was opposed to fundamental changes to the drug company's business strategy, even as its board considers drastic moves like splitting the company, selling off
assets or
doing deals to turn around a steep drop in its share
price.
On the heels of its acquisition of BG Group at a time when everyone else is offloading
assets in these days of dismal oil
prices, Royal Dutch Shell is banking optimistically on $ 50 oil to make this work, and hoping that a much leaner BG will
do the trick.
Instead of yield at any
price, investors wanted companies and
assets that would
do better in an environment of stable or rising growth.
Rising
prices for
assets seem to make most people better off, unless they are renters, or ethnic minorities, or immigrants, or come from large families and don't inherit a home of their own, or get sick and need to pay for medical care, or get fired, or get their pension fund ripped off or otherwise fall outside what most people think of as the bell - shaped curve of good fortune.
If they
do, of course,
asset prices will surge and the rich (the real rentiers) will get even richer.
The latter is often practically impossible to
do at short notice, or even if it is possible, may only be able to be carried out by selling the
assets (such as loan portfolios) at fire - sale
prices.
«If the outlook for the labor market
does not improve substantially, the committee will continue its purchases of agency mortgage - backed securities, undertake additional
asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of
price stability,» the Fed's announcement stated.
The FOMC's annoucement after their meeting on Wednesday affirmed the Fed's QE3 policy, offering no changes, while stating, «If the outlook for the labor market
does not improve substantially, the Committee will continue its purchases of agency mortgage - backed securities, undertake additional
asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of
price stability.»
«It (the Transocean deal) is a sign that we are near the bottom of the market, and people don't expect
asset prices to fall much further,» Swedbank analyst Magnus Olsvik said.
The creation of transitory and fragile
asset -
price bubbles is not built on labor nor
do they bring rising living standards in their wake.
«If rates go up — and I don't think they will — then the increase in yields would hurt metals and mining company
prices as money left these
assets and moved into fixed income.»
None of this spending has much effect on the consumer
price index, but it
does affect
asset prices.
If we
do need to move in the direction of giving
asset price and debt developments more weight in the conduct of monetary policy than hitherto, we need to educate our respective communities about these issues.
The GBTC trades like a closed - end - fund usually at a
price that is substantially different than the value of the underlying
asset, and
does not possess the ability to create or redeem shares in the open market.
In that sense their main concern is with rising land values — that is, the values that
do not accrue as a result of earnings on capital (the rents that typically are pledged to lenders as interest payments on the loans taken out to by the properties) but are economy - wide
asset -
price appreciation in specific categories.
Biofuels don't help, but biofuels are the result of high oil
prices, which are the result of poor incentives to bring oil up (both because of low yielding U.S.
assets and political resentment over U.S. foreign policy).
Do we have bubbly
asset prices?
Nouriel Roubini, one of a handful of economists said to have foreseen the financial crisis, counts 10 things that could cause trouble, if they aren't
doing so already, including the bursting of
asset -
price bubbles, unusually weak business investment, and extreme income inequality.
But this
does not mean that monetary policy should generally ignore the effects of increases and only respond to observed declines in
asset prices.
These risks and uncertainties include food safety and food - borne illness concerns; litigation; unfavorable publicity; federal, state and local regulation of our business including health care reform, labor and insurance costs; technology failures; failure to execute a business continuity plan following a disaster; health concerns including virus outbreaks; the intensely competitive nature of the restaurant industry; factors impacting our ability to drive sales growth; the impact of indebtedness we incurred in the RARE acquisition; our plans to expand our newer brands like Bahama Breeze and Seasons 52; our ability to successfully integrate Eddie V's restaurant operations; a lack of suitable new restaurant locations; higher - than - anticipated costs to open, close or remodel restaurants; increased advertising and marketing costs; a failure to develop and recruit effective leaders; the
price and availability of key food products and utilities; shortages or interruptions in the delivery of food and other products; volatility in the market value of derivatives; general macroeconomic factors, including unemployment and interest rates; disruptions in the financial markets; risk of
doing business with franchisees and vendors in foreign markets; failure to protect our service marks or other intellectual property; a possible impairment in the carrying value of our goodwill or other intangible
assets; a failure of our internal controls over financial reporting or changes in accounting standards; and other factors and uncertainties discussed from time to time in reports filed by Darden with the Securities and Exchange Commission.
In your framework,
price level path targeting (to which he nods) may
do the heavy lifting, and it may be completely unnecessary for the Fed to lend money directly to the Treasury, vs buying some
asset in the open market.
Every
asset that has risen in
price that one didn't purchase was an opportunity lost.
On a large scale, these companies are pursuing what many people have been
doing with computers in their basements for years: mining for a digital
asset that is now trading at around 13 times the
price of an ounce of gold.
If the prediction pans out, it could
do serious damage to new - car
pricing, the automobile finance sector and the
asset - backed securities market, Morgan Stanley's Adam Jones said in a note Tuesday...
Other option choices include One Touch Options for those traders that really like relying on technical analysis to
do their trading; especially if you think an
asset will hit a certain
price point during a trade but are unsure it will sustain it.
Additionally, should the
price be stagnant due to an upcoming news release regarding the underlying
asset, the
price could move drastically once it
does move again.
The counter to this is that negotiated private
asset sales are rarely
done at knock - down
prices as they occasionally are in the stock market]
Three ways to take profits while day trading, based on
price movement and what the
asset is
doing that day.