Bonds have low rates of returns, and
equities have high valuations.
I offer a few reasons: 1) Those that fund
equity have high demands placed on them.
1) Those that fund
equity have high demands placed on them.
Equities have the highest potential return, but also the highest risk.
Not exact matches
Meanwhile, Berkshire Hathaway
has fewer,
higher - paid employees and much of Buffett's wealth is in
equity, keeping the ratio low.
Federal Labor MP Pat Conroy will demand to know why Australian banks
have higher returns on
equity than those in other countries when he questions bank chief executives attending a Canberra hearing next week.
For one, investors are going to
have to get comfortable taking on more risk in their
equity portfolios by buying stocks at
higher valuations.
«Aequitas clearly is looking to
have a
high - impact campaign,» says Kevan Cowan, president of TMX Markets and group head of
equities.
After all, the former economics professor who is now president of the Hussman Investment Trust
has made a name for himself by repeatedly predicting a stock market decline exceeding 60 % and forecasting a full decade of negative
equity returns — and yet here we sit just 9 % from record
highs, even after some bouts of heavy selling.
The
high - yield market
has underperformed
equities this year, often seen as a sign of trouble for stocks.
Answer and solution: Term Sheet readers are aware that the private
equity industry is increasingly facing an inventory problem — viable targets are too expensive, activist shareholders are forcing companies to do PE - style cost - cutting while they're public, and corporate buyers
have so much cash they can afford to pay
high premiums.
On Wall Street,
equities traded
higher as traders hoped that concerns around Donald Trump's presidency may
have been exaggerated.
That is key, given that the firm is located in a
high - cost area and because it
has many young employees who need cash — not speculative
equity stakes — to meet their living expenses.
Twenty - three percent of respondents
had an «overweight» rating on Japanese
equities, the
highest level seen in the last two years.
Under European rules, a public recapitalization entails that
equity holders and subordinated creditors (owners of
high - ranking debt) will
have to share the burden and enter a «bail - in» of 8 percent (minimum) before public money is used.
Stocks in Europe still
have room to push
higher in the next few years despite a series of political pressures weighing on sentiment in the region,
equity analysts told CNBC.
Most vulnerable are taxpayers with children — tax dependents — and who take home
equity loan deductions,
have capital gains, and
have high state and local taxes.
Private
equity is typically, over any kind of reasonable time horizon, the
highest performing asset class that most LPs
have.
We
've seen rates really move
higher on a year - to - date basis and vacillate and that's
had a ripple effect into the
equity markets.
We
have no corporate solution to this problem;
high inflation rates will not help us earn
higher rates of return on
equity.»
Banks
have been an attractive investment in part because the return on
equity has historically been very
high — more than 20 % — but that level will be much harder to maintain.
In recent years they
have added international
equities and small - cap stocks — asset classes that come with
higher volatility than sturdier blue chips, but also offer the promise of
higher returns.
The bearish sentiment in Asia followed a softer lead from Wall Street, which
has led a global
equities rally over the past year thanks to strong world growth fueling
higher corporate earnings and stock valuations.
The NOCs are being approached by lawyers and investment bankers not just from Calgary but from Houston and Melbourne too, seeking patient capital for long - timeline projects while
equity prices for energy companies
have been steadily sinking on stock markets despite the
high price of oil.
In the near term,
higher interest rates will
have an immediate effect on consumers with credit card debt, home
equity lines of credit and those carrying adjustable rate mortgages.
A niche
equity website with a focus on
high - growth consumer product and retail companies, CircleUp
has partnered with Procter & Gamble and General Mills to offer more value beyond the funding, giving entrepreneurs access to these brands.
When Canadians
have higher equity stakes in their homes, it imparts more stability to the market.
Plaintiffs
have a
high rate of success in appraisal suits, especially in those involving management buyouts and private
equity deals, making it hard to label them nuisance suits.
According to Canada's Venture Capital & Private
Equity Association (CVCA), investment activity in Canada's venture capital (VC) industry
has accelerated since 2011, reaching its
highest level since 2006.
Does this mean that if U.S.
equities continue running
higher after their recent tumble, bitcoin will
have a chance to retest that $ 20,000 mark?
The office
would also police debt markets and oversee institutional traders,
high - frequency traders, new bond and
equity issues and disclosure relationships between investment advisers and their clients.
If the same person instead invested a little less each year (6 % of his income) in a portfolio weighted 80 % to
higher - returning
equities and 20 % to bonds, he
would only
have $ 469,000 at retirement.
Since Prime Minister Shinzo Abe's reelection, Japanese
equities have surged to their
highest level in 25 years.
Students
have long gone to business school to gain entry to
high - paying jobs in consulting, investment banking, private
equity, venture capital, and hedge funds.
Hedge funds and private
equity funds saw the potential to corner this market and began offering much
higher loan to value ratios, meaning they
would lend as much as 80 percent of the value of the property.
Dividend stocks that yield more When it comes to
equities,
high - paying dividend stocks, especially in the utility and REIT sectors,
have been the go - to investment of late.
The general consensus is that buying and holding stocks for the long term tends to work out, and that it makes sense to
have higher risk exposures (think
equities) in your younger years.
Valuations in
equity markets
have been
high and can't be justified by company fundamentals, Allianz CEO Oliver Bate said.
«
Equity markets
have really been buoyant for a long time now and valuations are extremely
high,
higher than you can actually justify based on fundamentals,» Allianz Chief Executive Oliver Bate told CNBC Saturday at the China Development Forum in Beijing.
VC funding isn't always easy to obtain and and you'll
have to give up
equity, but when you're a
high - growth company with
high - financing needs, it can be your best bet.
Some funds are from debt (less risky to the creditors, so it
has a lower cost of capital to the firm), and some funds come from
equity (more risky to the investors, so these
have a
higher cost of capital).
The industry in North America
has high fragmentation and
has low barriers to entry, but ACT enjoys one of the strongest positions, enhanced by the brand
equity of its banners, the quality of its real estate, and efficiencies stemming from the breadth of its operations.
WHO: David Shore, associate dean and faculty member at Harvard University, where he teaches the course «Strategic Marketing: Gaining Competitive Advantage Through Positioning and Branding» RATING: 7 (on a scale of 1 to 10, with 10 being the
highest) «They
have enormous
equity in the purchase of the Dr. Spock name.
Goldman Sachs ranks top for ECM volumes, meaning it
has worked on a
higher value of
equity deals than any of its rivals.
Tactical cash is extra cash you intentionally hold from time to time either because cash rates are so
high that they're attractive, or because the prospects for bonds and
equities are so negative that you
'd rather withhold capital from those two asset classes for the time being.
Stock markets
have been rallying for months in anticipation of sharply lower tax rates for corporations, with Wall Street's three major
equities indexes closing at record
highs on Friday.
All told, the jump in Treasury yields
has yet to make its way into the broader economy in the form of
higher borrowing costs, yet it will likely start to dampen the housing and auto markets as consumer loans become more expensive, said Gary Cloud, a portfolio manager of the Hennessy
Equity and Income Fund.
We just completed a deal involving a foundry that wound up earning a much
higher valuation for its
equity than we might ever
have imagined possible.
That being said
equity markets
have the
highest rate of return at ~ 10 %.
Software companies usually sell at larger p / e ratios because they
have much
higher growth rates and earn
higher returns on
equity, while a textile mill, subject to dismal profit margins and low growth prospects, might trade at a much smaller multiple.