Sentences with phrase «cheaper than bonds»

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.
If German stocks would yield 2,5 % that would be a pe ratio of 40; so it would be much cheaper than bonds, nonetheless I wouldn't be happy buying an ETF on the German DAX at a pe ratio of 40 in this example.
Stocks remain cheaper than bonds, because of extensive fed purchases during QE.
Buffett, speaking Tuesday at Fortune's Most Powerful Women Summit in Washington, said it's «quite clear stocks are cheaper than bonds» now.
By that logic, even 100 P / E for stocks would be much cheaper than bonds, which is obviously crazy at that level.
This trend does not appear to be supported by stock valuations, but rather by investors searching for income who found these stocks to be cheaper than bonds.
''... 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.»

Not exact matches

PIMCO Total Return ETF switched ticker symbols from TRXT to BOND on the NYSE Arca in April and has a gross expense ratio of 0.55 %, which is notably cheaper than the 0.85 % charged for the more established PIMCO Total Return A (PTTAX), according to Rosenbluth.
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.
Even so, with the market's valuations today being cheaper than the two previous times that the S&P 500 traded at these levels — and with the yields on the two primary alternatives, bonds and cash, being very low by comparison — this could be a great time to own companies by investing in th stock market.
Neither light reading nor cheap (it's hard to find online for less than about $ 75), this book is the most thoughtful and objective analysis of the long - term returns on stocks, bonds, cash and inflation available anywhere, purged of the pom - pom waving and statistical biases that contaminate other books on the subject.
The city's Industrial Development Agency issued $ 237 million in tax - exempt construction bonds to the owner, Bronx Parking Development, in 2007, but revenues have been far lower than expected since the stadium opened as fans have sought cheaper parking elsewhere or opted to take the train to games.
Trade: Buy bonds when the ratio is more than half a standard deviation below its long - run moving average (bonds are cheap relative to stocks) sell when it's more than half a standard deviation above its long - run moving average (stocks are cheap relative to bonds).
Corporate bonds (or retail bonds) are issued by companies to raise money if it is cheaper than issuing further shares.
Similarly, CAB might be cheaper than VAB, but the former has double the amount of corporate bonds and will therefore be more volatile.
Rather than put forth a costly effort to be known, it is cheaper to get the bonds wrapped by a well - known guarantor; not only does it increase perceived creditworthiness, it increases liquidity, because portfolio managers can skip a step in thinking.
For example, Claymore's 1 - 5 Year Laddered Government Bond (TSX: CLF) is cheaper than the iShares Short - Term Bond (TSX: XSB), but the former holds only government bonds, while the latter also includes corporate bonds.
Rather than using Capital Appreciation Bonds, maybe a mortgage - style note could have done it, even over 40 years, and at a much cheaper rate.
The ETF is also cheaper than the comparable iShares DEX Short Term Bond Index ETF (TSX: XSB), which has a management fee of 0.25 %.
But it's cheaper to buy bonds directly than to do so through a bond mutual fund.
For example, a plot of all bonds against a theoretical (usually zero coupon) yield curve show «rich» (overvalued) bonds with lower yields than bonds of similar credit and term, or «cheap» (undervalued) bonds with higher yields than bonds of similar credit and term.
As credit conditions change, corporate issuers experience different price responses, some more extreme than others, allowing for rebalancing into the temporarily cheap bonds of ultimately sound companies.
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.
When credit spreads are high, typically it is better to be in corporate bonds rather than stocks, but it does imply that stocks might be cheap relative to Treasury bonds.
«These ETFs are vastly cheaper than someone trying to buy the bonds themselves,» Mr. Berman said.
Still, VGV is cheaper than iShares XGB (MER of 0.39 %) or Powershares Ultra Liquid LT Gov» t Bond (MER 0.28 %.)
As a rule, when earnings yields are higher than bond yields, stocks are cheap.
BWX is pricey for an index fund (0.50 %) but is NTF at TD Ameritrade and trades with more volume than iShares International Treasury Bond (IGOV), the closest cheaper -LRB-.35 %) alternative.
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.
If you buy Treasury bonds directly, it may be that coupon - paying bonds are significantly cheaper than T - Bills.
Not cheap really, but consumer staples never really get cheap either... I suppose there's a reason for it though - I remember reading somewhere that a 50/50 combination of utilities and consumer staples stocks had a significantly higher historic safe withdrawal rate in retirement than S&P index or any of the % index / % bond allocations.
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