Slower economic growth has been partially masked
by rising asset prices and the wealth effect.
Not exact matches
In other words, if you tighten monetary policy, certainly
by more than is discounted in the market — and what's discounted in the market is very minor
rising market — that will reverberate through
asset class
prices, as well as then you can have a situation in terms of the economy.
The Congressional Budget Office defines
asset bubbles as: «An economic development in which the
price of a class of physical or financial
assets (such as houses or securities)
rises to a level that appears to be unsustainable and well above the
assets» value as determined
by economic fundamentals.
The notion is that
by pursuing a slightly tighter monetary policy, the central bank would take out insurance against the risk that the
rise in
asset prices is a bubble and that its busting would be disruptive.
With Deutsche Bank suggesting that the recent
rise in cryptocurrency
prices may be directly attributable to instability in those tokens» values, now is a good time for everybody, especially newcomers, to take a step back and think about what they expect to gain
by buying these digital
assets.
Perception of the debt - overhead problem is concealed
by the characteristic feature of today's finance capitalism: an
asset -
price inflation of property markets, that is,
rising land and stock market
prices.
These are bullish bets — you believe that the
price of the underlying
asset will
rise by a specified time.
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.
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.
By contrast, net US Treasury positions
rose during the financial crisis and are now net positive, as dealers have closed short positions (ie positions that
rise in value when the
price of an
asset falls) and accumulated securities holdings (Graph 3, left - hand panel).
Profits at T. Rowe
Price Group Inc. increased 23 percent for the three - month period that ended in June, as a
rising stock market pushed the amount of client money managed
by the firm to a record high.The Baltimore - based company said Thursday that
assets...
This can also be done in the reverse direction,
by placing CALL on a those
assets priced low and PUT on the
rising asset value.
This gap between Wall Street and Main Street (
rising asset prices, despite worse - than - expected economic performance) can be explained
by three factors.
The main reason for the slowdown was subdued growth in dwelling
prices, and hence dwelling
assets, although strong growth in household financial
assets, driven
by rising equity
prices, offset this to some extent.
Short term downdrafts in one
asset class are generally balanced out
by rising prices in other
asset classes.
If an
asset is yielding more, indicated
by a higher or
rising spread, the
price is dropping.
This term has been dubbed «the wealth effect,» and it has been cited
by central bankers as a reason to favorably look upon
rising asset prices.
Considering that the
prices of
asset classes, and their respective sectors, usually
rise and fall in tandem, the portfolio's total return can be more affected
by its allocations than
by the specific securities it holds, Investors Answers points out.
This is because the strategy involves achieving your target
asset allocation
by selling a portion of the
assets that have
risen in
price and buying more of the
assets that have fallen in
price.
With increased levels of volatility, a
rising dollar and a potential bottoming of commodity
prices, investors jumped into each of those categories in February, driving up
assets in each
by $ $ 527 million (volatility), $ 389 million (currencies) and $ 657 million (commodities), respectively.
By swapping those
assets that are currently trading below the purchase
price (due to a
rise in interest rates, deteriorating credit situation, etc.) you can reduce or eliminate the capital gains you would otherwise have paid on your other profitable transactions in the current tax year.
Our emphasis has been on the risk posed to
asset prices by relatively demanding valuations in many
asset classes and the risks posed
by rising inflation pressure and the implications of this for medium - term central bank accommodation.
When you pressure investors to take on risks that they would not normally have taken
by pushing interest rates to «rarely - before - seen» lows — and when you entice consumers to finance gratification through credit rather than through savings —
asset prices rise precipitously.
Shorting If a trader believes that the
price of an
asset will not
rise but fall, he can still make money on it
by «shorting» it.
Being Long in a CFD means you are buying the CFD's on the market
by speculating that the market
price of the underlying
asset will
rise between the time of the purchase and sale.
However, we find that falling renewable energy costs, air pollution regulations and
rising carbon
prices will continue to undermine the economics of coal power in the EU, potentially making generation
assets unusable
by 2030.
Prices on retail assets rose the most in July, by 1.7 percent, followed by prices on apartment buildings, which rose by 1.0 pe
Prices on retail
assets rose the most in July,
by 1.7 percent, followed
by prices on apartment buildings, which rose by 1.0 pe
prices on apartment buildings, which
rose by 1.0 percent.