Sentences with phrase «attractive than bonds»

Nomura Securitiea» Siobhan Morden, head of Latin America fixed income strategy, has written about the potential for a glut of Argentina bonds, and commented this week that second - tier provinces look less attractive than bonds issued by the Province of Buenos Aires, which includes the city of that name and is the most liquid provincial market.
If the S&P 500's earnings yield is above the 10 - year Treasury yield, the model suggests stocks are more attractive than bonds.
«Stocks certainly look more attractive than bonds, but the case for stocks versus other asset classes is less clear... «So while returns may compress from the outsized gains we have seen over the last several years, we remain constructive on equities.
«Stocks certainly look more attractive than bonds,» Subramanian writes,» [but] the case for stocks versus other asset classes is less clear.»

Not exact matches

The biggest losers were energy (XLE), consumer staples (XLP) and materials (XLB), all down more than 7 percent amid riding bond yields — which makes dividend stock yields less attractive and overrode other factors, like stronger oil prices and a weak dollar.
Certainly, it offers an attractive level for longer - term investors such as pension and insurance funds to lock in a relatively decent yield, and will tempt some portfolio managers to buy bonds rather than equities.
More than just tempering Gross's anti-equity remarks, the longtime advocate of buying and holding equity - based index funds and ETFs went so far as to say that «equities today are more attractive relative to bonds than at any other time in history.»
With the Fed no longer buying bonds and investors expecting greater inflation, analysts say higher yields could make bonds more attractive than stocks.
This belief effectively subsidizes the industry because it allows banks to borrow much more cheaply in the bond market than they otherwise could, making equity funding proportionately less attractive.
However, we took note of comments from famed investor Jeff Gundlach; that it is wrong to believe U.S bonds are more attractive than those from Europe and Japan because of currency risk.
''... though the value equation has usually shown equities to be cheaper than bonds, that result is not inevitable: When bonds are calculated to be the more attractive investment, they should be bought.»
The earnings yield (earnings per share divided by the share price, or the inverse of the price - to - earnings ratio) still looks attractive versus real (after inflation) bond yields, meaning stocks may be cheaper than they look in a low - rate world.
Mixed with Maryland's scarcity of large parcels and access to a large population within a day's drive, it makes the state an attractive place for investors seeking steady returns higher than they can find in low - interest rate bonds.
Money market funds are essentially ultra-short-term bond funds that offer investors liquidity — as in quick access to their cash — and a small yield that's typically more attractive than merely parking cash in a bank savings account.
But today, their high dividend payouts make these stocks attractive bond substitutes, and as such, they sell at much higher P / Es than they have historically.
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All the excess liquidity being added to Europe and suppressing bond yields makes European equities, which trade at markedly lower multiples than in the U.S., relatively attractive.
Zero coupon bonds are more attractive than regular bonds due to a higher yield to maturity.
Well, researchers from Rutgers University have a theory: When you're in a happy relationship, you subconsciously think that people who pose a threat to your bond are less attractive than they really are.
Those searching for income - producing investments may find dividend - paying stocks more attractive than today's lower - yielding bonds.
Most bond investors take a buy - and - hold strategy, partially because bonds are less liquid than stocks but also because the income characteristics of bonds are attractive over the long - term.
Callable bonds are more risky for investors than non-callable bonds because an investor whose bond has been called is often faced with reinvesting the money at a lower, less attractive rate.
The taxation of dividends is less than interest earned on bonds or certificates of deposit so that is one very good reason why dividends are attractive to an investor in a taxable investment account.
Prices of bonds in mutual - fund portfolios drop when rates rise, because their yields are less attractive than those of newly issued bonds.
One reason that a bond can be significantly less than face value is because people are seeking better investments elsewhere, so for example if a bond doesn't mature for another 10 years, that 20 % increase in face value isn't very attractive when compared to say leaving your money in the stock market for 10 years.
At base, this looks like Vanguard's attempt to generate an active fund that's just slightly more attractive than a broad bond market index.
Professor Siegel states «stocks, particularly stocks paying high dividends, may offer investors a more attractive income and inflation protection than bonds over the coming decade.»
The flattening of the bond yield curve in recent years meant you might pay only 1 % or 1.5 % more to lock in a long - term rate, and that made the stability of fixed rates much more attractive than it was five years earlier.
Single - family rentals have historically offered more attractive risk - adjusted returns by this measure than the S&P 500 and bonds, as outlined in the chart below:
What makes annuity products more attractive than stocks and mutual funds, as well as taxable or tax - free bonds, for funding IRAs is that they will not lose value.
There is a feeling that bond yields above 3 % will make bonds far more attractive than equities, and rising yields could lead to a serious downdraft for equity markets.
This way, the bond will not be any less attractive than any other investments in the market.
Treasury Inflation - Protected Securities (TIPS) and bonds, for example, may be taxed at higher rates than stocks, making them a potentially attractive choice for a Traditional IRA.
I find most individual stocks to be more attractive than the corresponding bonds, and the overall stock market more attractive than the overall bond market.
The fact that MBS investors are exposed to downside prepayment risk, but rarely benefit from it, means that these bonds must pay an incrementally higher interest rate than similar bonds without prepayment risk, to be attractive investments.
As the name suggests, the ETF holds equal amounts of provincial, federal and agency bonds maturing in 1 to 5 years for an attractive MER of 0.15 %, which is 10 basis points cheaper than XSB.
Merger Funds: More Tame Than Reputation Some investors have been turning to a mutual - fund niche that may offer an attractive way to diversify away from the risks of stocks or bonds: funds that engage in merger arbitrage.
Since bonds are yielding less than 4 %, stocks are more attractive today for long - term investors.
As a result, I believe it makes sense to increase your equity exposure a little compared to what you might have done when bonds were more attractive, and to balance that by choosing conservative stocks that carry less risk than the overall market.
This might make such investments more attractive than other cash - generating securities, such as bonds.
Despite typically offering lower coupon rates than other forms of taxable bonds, for many investors the tax benefits alone make municipal bonds an attractive prospect.
According to the same fact sheet, Canadian municipal bonds offer an attractive risk / return profile since they tend to command higher yields than provincial or federal bonds.
We believe commodity - linked real assets look the most attractive after shrugging off the negative momentum of the last few years, but investors should keep in mind that these exposures tend to exhibit higher levels of volatility than TIPS or municipal real return bonds.
The earnings yield (earnings per share divided by the share price, or the inverse of the price - to - earnings ratio) still looks attractive versus real (after inflation) bond yields, meaning stocks may be cheaper than they look in a low - rate world.
Many view I - Bonds as more attractive than TIPS.
When interest rates fall, newly issued bonds will pay a lower yield than existing issues, which makes the older bonds more attractive.
Bond funds typically pay monthly interest, which makes them attractive to investors who need income more frequently, rather than semi-annually.
This can be attractive when your preference is for the security offered by bonds and when 20 - year TIPS provide substantially more interest than 10 - year TIPS.
Moreover, though the value equation has usually shown equities to be cheaper than bonds, that result is not inevitable: When bonds are calculated to be the more attractive investment, they should be bought.
Thus in normal markets if bond yields rise they become more attractive than risky stocks, so money shifts.
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