The interview covers my view of Apple (not one of my strong points), Fed Policy, and what should value investors
do in this low interest rate environment.
Not exact matches
«As long as we're
in this very
low interest rate environment, I just don't see a major problem,» says Guatieri.
«It is thus important to realize that
in the current
environment of
low long - term
interest rates, fiscal prudence
does not require bringing the annual budget balance to zero almost immediately,» he wrote
in a paper for the Bennett Jones law firm.
So, what
does this all mean
in the context of today's historically
low interest rate environment?
Russ Koesterich
does an excellent job of explaining the unique challenges that investors face
in the current
environment, namely balancing risk and reward
in a
low interest rate world.
I've recently noticed a significant amount of mania - like behavior
in which investors simply ignore valuations and it
does feel like we're
in the euphoric stage of the bull market
in which everyone can make money from stocks and the
low interest -
rate environment has helped perpetuate it.
Such statements reflect the current views of Barnes & Noble with respect to future events, the outcome of which is subject to certain risks, including, among others, the general economic
environment and consumer spending patterns, decreased consumer demand for Barnes & Noble's products,
low growth or declining sales and net income due to various factors, possible disruptions
in Barnes & Noble's computer systems, telephone systems or supply chain, possible risks associated with data privacy, information security and intellectual property, possible work stoppages or increases
in labor costs, possible increases
in shipping
rates or interruptions
in shipping service, effects of competition, possible risks that inventory
in channels of distribution may be larger than able to be sold, possible risks associated with changes
in the strategic direction of the device business, including possible reduction
in sales of content, accessories and other merchandise and other adverse financial impacts, possible risk that component parts will be rendered obsolete or otherwise not be able to be effectively utilized
in devices to be sold, possible risk that financial and operational forecasts and projections are not achieved, possible risk that returns from consumers or channels of distribution may be greater than estimated, the risk that digital sales growth is less than expectations and the risk that it
does not exceed the
rate of investment spend, higher - than - anticipated store closing or relocation costs, higher
interest rates, the performance of Barnes & Noble's online, digital and other initiatives, the success of Barnes & Noble's strategic investments, unanticipated increases
in merchandise, component or occupancy costs, unanticipated adverse litigation results or effects, product and component shortages, the potential adverse impact on the Company's businesses resulting from the Company's prior reviews of strategic alternatives and the potential separation of the Company's businesses, the risk that the transactions with Microsoft and Pearson
do not achieve the expected benefits for the parties or impose costs on the Company
in excess of what the Company anticipates, including the risk that NOOK Media's applications are not commercially successful or that the expected distribution of those applications is not achieved, risks associated with the international expansion contemplated by the relationship with Microsoft, including that it is not successful or is delayed, the risk that NOOK Media is not able to perform its obligations under the Microsoft and Pearson commercial agreements and the consequences thereof, risks associated with the restatement contained
in, the delayed filing of, and the material weakness
in internal controls described
in Barnes & Noble's Annual Report on Form 10 - K for the fiscal year ended April 27, 2013, risks associated with the SEC investigation disclosed
in the quarterly report on Form 10 - Q for the fiscal quarter ended October 26, 2013, risks associated with the ongoing efforts to rationalize the NOOK business and the expected costs and benefits of such efforts and associated risks and other factors which may be outside of Barnes & Noble's control, including those factors discussed
in detail
in Item 1A, «Risk Factors,»
in Barnes & Noble's Annual Report on Form 10 - K for the fiscal year ended April 27, 2013, and
in Barnes & Noble's other filings made hereafter from time to time with the SEC.
Such statements reflect the current views of Barnes & Noble with respect to future events, the outcome of which is subject to certain risks, including, among others, the effect of the proposed separation of NOOK Media, the general economic
environment and consumer spending patterns, decreased consumer demand for Barnes & Noble's products,
low growth or declining sales and net income due to various factors, possible disruptions
in Barnes & Noble's computer systems, telephone systems or supply chain, possible risks associated with data privacy, information security and intellectual property, possible work stoppages or increases
in labor costs, possible increases
in shipping
rates or interruptions
in shipping service, effects of competition, possible risks that inventory
in channels of distribution may be larger than able to be sold, possible risks associated with changes
in the strategic direction of the device business, including possible reduction
in sales of content, accessories and other merchandise and other adverse financial impacts, possible risk that component parts will be rendered obsolete or otherwise not be able to be effectively utilized
in devices to be sold, possible risk that financial and operational forecasts and projections are not achieved, possible risk that returns from consumers or channels of distribution may be greater than estimated, the risk that digital sales growth is less than expectations and the risk that it
does not exceed the
rate of investment spend, higher - than - anticipated store closing or relocation costs, higher
interest rates, the performance of Barnes & Noble's online, digital and other initiatives, the success of Barnes & Noble's strategic investments, unanticipated increases
in merchandise, component or occupancy costs, unanticipated adverse litigation results or effects, product and component shortages, risks associated with the commercial agreement with Samsung, the potential adverse impact on the Company's businesses resulting from the Company's prior reviews of strategic alternatives and the potential separation of the Company's businesses (including with respect to the timing of the completion thereof), the risk that the transactions with Pearson and Samsung
do not achieve the expected benefits for the parties or impose costs on the Company
in excess of what the Company anticipates, including the risk that NOOK Media's applications are not commercially successful or that the expected distribution of those applications is not achieved, risks associated with the international expansion previously undertaken, including any risks associated with a reduction of international operations following termination of the Microsoft commercial agreement, the risk that NOOK Media is not able to perform its obligations under the Pearson and Samsung commercial agreements and the consequences thereof, the risks associated with the termination of Microsoft commercial agreement, including potential customer losses, risks associated with the restatement contained
in, the delayed filing of, and the material weakness
in internal controls described
in Barnes & Noble's Annual Report on Form 10 - K for the fiscal year ended April 27, 2013, risks associated with the SEC investigation disclosed
in the quarterly report on Form 10 - Q for the fiscal quarter ended October 26, 2013, risks associated with the ongoing efforts to rationalize the NOOK business and the expected costs and benefits of such efforts and associated risks and other factors which may be outside of Barnes & Noble's control, including those factors discussed
in detail
in Item 1A, «Risk Factors,»
in Barnes & Noble's Annual Report on Form 10 - K for the fiscal year ended May 3, 2014, and
in Barnes & Noble's other filings made hereafter from time to time with the SEC.
But I
do not like bonds and feel they carry high risk without adequate reward
in today's
low interest rate environment.
For home buyers this means they can still expect the
low interest rate environment we've become accustomed to throughout 2016, but don't hold out for a dip
in rates below the historically
low levels that we experienced
in 2015.
And they don't understand why because the media keeps talking about the fact that we're still
in this
low interest rate environment and the Bank of Canada
rate hasn't changed so why is the bank's
rate changing?
I have the majority of my investments
in index funds at Vanguard
in a taxable account, but don't like bond funds paying next to nothing
in a rising
interest rate environment, though their
low correlation to stocks would be nice, return free risk though.
But employers don't want to fund expensive DB plans, particularly
in a
low interest rate environment.
Bonds have
done well
in an
environment marked by high demand,
low interest rates and
low levels of defaults, but we know that markets change.
In this
environment getting a
low mortgage
interest rate is still possible you just have to know how to
do it.
My question is
do you consider this
low interest rate environment we are
in, and it seems to be ongoing, when making investment decisions and specifically pertaining to PE Ratios?»
If they had instead actually purchased a house that was truly comparable
in size to the apartment they could likely have
done so for less than the cost of the apartment
in the current
low interest rate environment.
And you're right, that the people who are selling mutual funds and savings plans haven't figured out the right ways, and you know,
in a high
interest rate environment, spending the
interest, or a high dividend
environment, one can make
do with that, but when
interest rates are
low, and dividends are out of fashion, then people have to spend the money down.
I've recently noticed a significant amount of mania - like behavior
in which investors simply ignore valuations and it
does feel like we're
in the euphoric stage of the bull market
in which everyone can make money from stocks and the
low interest -
rate environment has helped perpetuate it.
Do you feel more justified
in living above your means (borrowing money to pay for expenses)
in a
low interest rate environment?
I knew about it when I first
did my analysis, but
in the past year I've been contemplating what this could mean to the company
in the long run given the
low interest rate environment we have now and extending out for the foreseeable future, and it's not pretty.
A loan is issued with a LIBOR Floor to ensure the base
rate does not fall below a set
rate in a
low or falling
interest rate environment.
KAREN MACKAY: It's
interesting because I
do hear it from both sides — from general counsel and from managing partners, who are trying to cope with all of this — and
in so many firms, because general counsel, the client, has grown up
in an hourly
rate environment,
in many cases, they'll come back with an alternative fee arrangement, it's just a
lower hourly
rate or a
lower hourly
rate by volume.
With pricing reaching an all - time high
in a deal - drought
environment, coupled with global market volatility, investors and developers are skittish
in where to put their dry powder, pushing private equity professionals to new, niche areas of real estate that haven't previously been explored.As the industry emerges from a
low interest rate environment, and into a rapidly changing landscape with
lower taxes, less regulations, higher
rates and higher inflation, what
does this mean for private equity real estate?
«The rise
in housing prices and the increase
in household investment
in houses and consumer durables
do not appear out of line with what might be expected
in the current
environment of
low interest rates and continuing growth
in real disposable incomes,» Kohn averred.