Sentences with phrase «because asset price»

It is a bubble if most buyers are buying because the asset price has been going up and without regard to fundamentals.

There are no rules because asset price moves carry on for unpredictable amounts of time, even if they do tend to return to the mean over the long term.

Earnings would also wax a lot faster because all asset prices would drop reflecting the rise in the cost of capital, making new investments cheaper and more profitable.

Because some asset prices may fall more abruptly than they rise, and because the effects of downward moves in asset prices on demand may be larger due to the greater negative impact of deflation on the net worth of borrowers — witness the United States in the 1930s or Japan in the 1990s, the case for adjusting monetary policy in response to negative asset price shocks is commonly considered more compelling than in the alternative context.

Diversifying your trades over many assets and types of assets helps to lower risks, because some asset prices may go up when others go down.

Note: at the same time, that don't need to make money, and have financial flexibility, don't care to invest, because asset prices are too high compared to the cash flows that they are likely to throw off.

Not exact matches

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.

Later, in a response to a question on why the Canadian dollar remains buoyant despite so many negatives, the governor said Canadian asset prices tend to track what's happening in the U.S. because, historically, when the American economy grows, the Canadian economy grows with it.

When prices collapsed, so did demand because too many consumers were stuck with debts worth more than their assets.

Because they trade on an exchange, products like ETFs and ETNs are not only priced using a net asset value (NAV)-- the value of securities held minus liabilities and divided by shares outstanding — that is calculated at the end of each day and by intraday NAV (iNAV) throughout the day.

«Asset prices, including property, are at nose - bleed valuations because of his central bank money printing,» Edwards writes.

Although the terms of the Knowingly purchase haven't been made public, sources who looked into buying some or all of the assets said the initial price for the editorial part of the company was $ 6 million, but eventually that was reduced to $ 1 million, and still many bidders backed out — in part because the editorial staff had all been let go.

For companies involved in capital intensive activities, such as the auto companies and railroads, you are going to see much lower price to cash flow multiples because investors know that much of the money is going to have to be poured back into equipment, facilities, materials, and fixed assets or else the firm will be hurt.

Bubbles typically occur when investors purchase assets with the expectation of short - term gains because of rapidly rising prices.

Not inflation, but this is interesting, because of how your expression, gels, with those whose thoguhts are concerned for inflation, when the world is still roughly at ZIRP, and essentially, is in a state of suspended depression, where assets blow - up, due to savings glut, and a great excess of money printing globally (on the back of false rises in asset pricing).

It would be easy to exaggerate the importance of this effect, because there were very large swings in the housing sector before deregulation, and asset - price booms and busts occurred even in the regulated world.

Wang said in Tuesday's briefing that he's looking to buy cinema assets in Europe but is waiting for the right time because prices are too high.

The issue is very simple: U.S. wealth is overstated because the prices of stocks, bonds (particularly corporate), even real estate, are excessive in relation to the replacement value of the underlying assets, and the income streams that are derived from them.

While the liberalizing reforms usually undermine the ability of the elite to capture a disproportionate share of growth, in other words, because the reforms often seem to encourage massive foreign capital inflows, and these push up the price of assets largely controlled by the elite, political opposition to the reforms is weakened.

He modified the original Fama - French five - factor model to account for research finding that, because there is no real - time market price for illiquid private assets, returns are appraisal - based and subject to manager judgment.

Cash transfers would likely trigger a rapid rise in equity markets, because earnings are currently cyclically depressed, so the asset price effect of cash transfers would likely be way more powerful than any impact of «small» amounts of QE.

I am not arguing that these alternative instruments will be successful in countering asset price bubbles and credit imbalances, because I think bubbles are a permanent feature of the landscape resulting from entrenched human behaviour.

In addition to price volatility, investors in crypto assets have lost money because of:

Level 3 assets are generally illiquid investments that are difficult to value, both because there is no easily observable market price (level 1), nor is there a reliable pricing model (level 2).

As Nobel economist (and one of my dissertation advisors at Stanford) Joe Stiglitz noted on Friday, a good part of the reason for rising oil prices is because the producers are already awash in U.S. assets, and to supply significantly more oil will just force them to accumulate more low - return assets.

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).

If these inflows however are counterbalanced by rising private inflows from Chinese businesses and wealthy individuals taking money out of China, either because of weaker domestic growth prospects of because of rising nervousness and uncertainty, asset prices might not fall as much as we would have expected, but Australia will be caught in a vice a little like that of, for example, Spain, in which export weakness can not be partially counterbalanced by a weaker currency.

Because CFDs are essentially derivatives, the price of CFDs is a fraction of the actual value of the underlying asset.

Indeed, because all of this yield seeking has driven a persistent uptrend in speculative assets in recent years, investors seem to believe that «QE just makes prices go up» in a way that ensures a permanent future of diagonally escalating prices.

It is an unusual occurrence because price movements are typically much more gradual, with the asset hitting all or most of the price points as it moves through the range.

Mark Whitmore: Well, batting clean - up here is a little tough, because as Bill mentioned, I think that people have really nicely covered a lot of the main, sort of theoretical tenants of Austrian Economics, I guess I would add that specifically the role of central banking is something that I think is really distinct from an Austrian perspective vs Keynesianism, specifically the asset price inflation that you've seen has largely been ignored specifically in the last two bubbles, and now we're into a third bubble I would argue as well.

For example, massive printing of money will cause LOWER gold prices because the market sees perpetual support of financial assets.

Obviously, with a cyclical asset you will find losses and the widest spread between price and financial operating metrics because a trough occurs in a bear market of declining product prices.

This is because the broker will provide you with the outermost prices of the asset.

You're going to have to endure this because right now, the most ridiculously priced asset in the world is certainly German debt.

This is because you have to now factor in a price point as well and determine whether or not it is a viable value for that specific asset.

While any announcement is likely to cause a dramatic response from the financial markets — all the more so because few markets seem to be pricing in the possibility of a change in tack at the moment — we don't foresee a quick end to the ECB's asset - buying program.

The reason why this trade exists is because there is little volume in futures (relative to other asset classes) and because the strike prices for expiration can be subject to manipulation.

It's also worth noting that if Ripple somehow knew that the XRP price would fall in the near future (e.g., because of its inability to get XRP listed on digital asset exchanges like Gemini and Coinbase), the company could have decided to maximize its tax deduction by making the charitable contribution ahead of the decline.

There is increasing asset and wealth inequality, partly because of the property price boom, partly also because of the way increased income inequality in the 1980s has an impact over time.

And then your book will drop into high - priced electronic oblivion because to the publisher, that book is now just a property asset on their accounting ledger.

When asset prices grow more quickly than the income that they produce, it's because valuations are increasing.

The price declines because the distribution is withdrawn from the fund's assets, which decreases the net asset value (NAV).

BlackRock's assets under management will decline because of the general decline in asset prices but also because of the redemptions.

Asset prices move and some people mimic to intensify the move because they feel they are missing out.

If anything, the price of an ETF is more tightly coupled to the underlying holdings or assets than a mutual fund, because of the independent creation / destruction mechanism.

Fed policy inflates housing - related assets, gives some price inflation, but because labor is not scarce globally, wages are flattish.

Difficulties happen in the «real economy» when current assets have a difficult time getting financed, and consumer durable purchases and capital investments get delayed because financing is not available at reasonable prices.

That's because the insurance company would otherwise lose money liquidating assets to fund your surrender (bond prices go down when interest rates go up).