Sentences with phrase «economic growth rates tend»

Interest rates and nominal economic growth rates tend to move in tandem, so their competing effects on «justified» valuations generally cancel out.

Not exact matches

Indeed, history reminds that softer economic growth (or contraction) tends to be accompanied by lower interest rates.

This pattern is consistent with the historic norms: When economic growth and the central bank policy rate are both low, the correlation between stocks and bonds tends to be negative.

Small - and mid-cap equities also are more heavily tilted toward Financials and cyclical sectors, which tend to do well as economic growth accelerates and interest rates rise.

The International Monetary Fund (IMF) has published very robust research involving more than 140 countries around the world which demonstrates that countries with extreme levels of inequality (1) tend to experience much slower rates of economic growth; and (2) are far more susceptible to the kind of severe financial / banking / credit crisis that America just went through five years ago.

As interest rates tends to rise in anticipation of stronger economic growth, assets which are more sensitive to economic growth (such as high yield debt) can still perform well.

The Fed will tend to raise rates to try to slow inflation, and lower rates when it feels inflation is too low and economic growth should be stimulated.

Thomas Piketty in an idea as old as Marx suggests that wealth tends to concentrate in capitalist markets if the rate of return on capital exceeds economic growth.