It influences interest rates around the world and affects everything from
bond and stock prices to currencies to mortgage and car loans.
The recent divergence between US
bond and stock prices demands attention as we move ahead.
This means
bond and stock prices can both go down at the same time.
As a result, junk
bond and stock prices can at times move in the same direction based on the market's perception of the companies strength or weakness.
But with global growth still sluggish and
bond and stock prices looking expensive, balancing income and risk is more important (and challenging) than ever.
So now
bond and stock prices move opposite of each other.
«In 1981 the public should have seen Volcker's jacking up of short - term rates to 21 percent as a very positive move, which would bring down long - term inflation and push up
bond and stock prices.»
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.
It influences interest rates around the world and affects everything from
bond and stock prices to currencies to mortgage and car loans.
Not exact matches
Bond prices moved slightly higher
and stocks waffled, after the Fed sounded slightly less «hawkish» than expected.
Bond prices were higher,
stocks waffled
and the dollar flip - flopped after the Fed's post-meeting statement failed to deliver the clarity markets were looking for on the course of rate hikes.
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.
I noted a week ago that Bernanke had essentially eased monetary policy by spurring a loosening of financial conditions via higher
stock prices, lower
bond yields, tighter credit spreads,
and a weakening of the U.S. dollar.
NEW YORK, Jan 17 - U.S. fund investors stampeded into
bonds and world
stocks during the latest week, ignoring warning signs about stretched
prices, according to the Investment Company Institute.
A generous back - of - the - envelope estimate is that Hugh Hefner is worth $ 26 million, not accounting for
price fluctuations in Hefner's
stock market
and bond investments.
After the rig - count data release, crude oil
prices remained weak alongside
stocks and bonds.
Former Federal Reserve Chairman Alan Greenspan gave a stark warning about
stock and bond prices Wednesday.
If Brexit - like sentiment in other nations leads to restrictions on the flow of trade
and labor, he adds, «that is going to create greater uncertainty
and volatility» — at a time when some commentators believe that global
stock and bond prices are overdue for a tumble.
Here's the upshot: After an initial multiyear recovery in
stock and bond prices after a crisis (the rally we saw through last year) comes a long stretch of lousy returns.
The
stock price has collapsed below $ 1 in recent days (although it climbed back above that mark in today's session)
and bond prices also have plummeted amid open talk from analysts that a bankruptcy filing is imminent.
Right now with earnings growth very strong
and the
bond market already reflecting a fair amount of Fed tightening (
pricing in 5 rate hikes over the coming 2 years), my sense is that the
stock market is in OK shape to withstand some tightening of financial conditions
and not unravel in the process.
Treasury yields pull back sharply Thursday after the reemergence of trade tensions between global powerhouses rattles investors, pushing
stocks down
and bond prices up
Stock / commodity
prices are dropping steadily, while
bond returns in the US
and even such «spendthrift» nations as France remain historically low.
In times of economic instability
and deflation (falling
prices),
bonds have performed better than
stocks in the past.
Instead of financing Social Security
and Medicare out of progressive taxes levied on the highest income brackets — mainly the FIRE sector — the dream of privatizing these entitlement programs is to turn this tax surplus over to financial managers to bid up
stock and bond prices, much as pension - fund capitalism did from the 1960s onward.
The dream is to manage labor's savings on a commission basis, steering it to inflate
stock and bond prices.
Tax cuts on wealth are promoted as if they will be invested rather than used to pay the financial sector more interest or be gambled on currencies
and exchange rates, interest rates,
stock and bond prices, credit default swaps
and kindred derivatives.
I think we're going to see a lot of action in declining
prices in both
stocks and bonds because they will be highly correlated.»
In actuality, while the skill set necessary to make intelligent decisions can take years to acquire, the core matter is straightforward: Buy ownership of good businesses (
stocks) or loan money to good credits (
bonds), paying a
price sufficient to reasonably assure you of a satisfactory return even if things don't work out particularly well (a margin of safety),
and then give yourself a long enough stretch of time (at an absolute minimum, five years) to ride out the volatility.
Rising housing
prices raise the cost of living, while rising
stock and bond prices increase the cost of buying a retirement income — leaving pension funds unable to make good on their promises.
At the start of the sustained rise in equity
prices,
stock dividend yields exceeded the yields on Treasury
bonds and this was perceived as normal, partly reflecting the searing experience of the Great Depression.
We advocate reducing popular positions where
prices have moved beyond fundamentals (examples are gilts
and bond - proxies such as utility
stocks).
This is all because the central tenet of the old playbook — the Fed buys
bonds, forcing interest rates down
and stock prices up — is being rewritten.
Bond act as both a volatility - minimizer for those investors that can't stomach a large
stock allocation
and a source of stability during
stock market sell - offs for either spending purposes or liquidity for those that need to rebalance into lower
stock prices.
Stock prices have plummeted, risks premiums are rising in
bond markets,
and exchange rates are becoming misaligned.
The act of a securities dealer to raise or lowering
prices on certain investment options such as
stocks and bonds...
«Between 2 %
and 5 % for
stocks,
bonds and commodities are expected long term returns for global financial markets that have been pushed to the zero bound, a world where substantial real
price appreciation is getting close to mathematically improbable.
Earlier this month in his outlook for September, the head of the world's largest
bond shop employed the Lindy dance craze, former Citigroup CEO Chuck Prince, the Wimpy cartoon character
and his «dying cult of equity» argument in a mash - up of prose to describe the «age of inflation that is upon us,» which he claims typically «provides a headwind, not a tailwind, to securities
prices in both
stocks and bonds.»
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.
Although
bonds generally present less short - term risk
and volatility than
stocks,
bonds do contain interest rate risk (as interest rates rise,
bond prices usually fall,
and vice versa)
and the risk of default, or the risk that an issuer will be unable to make income or principal payments.
Prices for
stocks,
bonds and real estate are near all - time highs.
An array of measures is selected from the overall credit supply (or what is the same thing, debt securities) to represent «money,» which then is correlated with changes in goods
and service
prices, but not with
prices for capital assets —
bonds,
stocks and real estate.
But the real emergency affects mainly debtors — mortgage debtors with negative equity, companies loaded down with junk
bonds (many of them taken to buy back corporate
stock and increase dividend payouts to increase the
price at which managers can cash out).
The essence of the global financial bubble is that savings are diverted to inflate the
stock market,
bond market
and real estate
prices rather than to build new factories
and employ more labor.
This is especially true at a time when some investors have lost faith in this principle following several notable episodes in recent years when
stock and bond prices moved together.
He has experience in
bond trading, equities trading, settlement
and pricing, as well as
stock market analysis.
Bond prices have tended to go up when
stock prices have gone down
and vice versa, displaying a negative correlation on average.
An alternative definition of a Bubble Economy therefore focuses on asset -
price inflation — rising
stock market,
bond market
and real estate
prices in the face of an economy - wide debt deflation.
The markets finally woke up to this on Wednesday, after sleepwalking for the past year, as
bond yields
and stock prices sank
and the...
In general, they may seek to take advantage of market inefficiencies such as
pricing differences
and relative discrepancies between securities such as
stocks and bonds, technical market movements, deep fundamental valuation analysis,
and other quantifiable trends
and / or inconsistencies.