Sentences with phrase «expect equity valuation»

This is why we do not expect equity valuation multiples to revert to historical means.

Not exact matches

When you purchase a broad swath of equities, say an S&P 500 index fund, the returns you can expect over the next decade or so comprise four building blocks: the starting dividend yield, projected growth in real earnings per share, expected inflation, and the expected change in «valuation» — that is, the expansion or contraction in the price / earnings (P / E) multiple.

You can expect both groups to require a valuation — usually to be performed by appraisers of their choice — whenever a company seeks either a significant increase in credit or a new infusion of equity capital.

This helps explain our preference for European, Japanese and emerging market (EM equities), where valuations look more reasonable and gains have been driven more by expected earnings growth.

«Absent material equity valuation improvements for Ares and KKR, we expect further conversions of Fitch - rated alternative investment managers to be decreasingly likely, given that the remaining managers generally have more incentive income which would not benefit from the lower tax rate,» said Meghan Neenan, head of North American Non-Bank Financial Institutions at Fitch.

Equities are essentially 50 - year duration investments at current valuations, and even if investors are passive and don't hold any view about future market returns at all, one of the basic principles of financial planning is to align the duration of ones assets with the expected horizon over which the funds are expected to be spent.

Stock markets are tumbling int he wake of the decision but given the recent strength in equities, in the face of the rising interest rate expectations, we don't expect a serious move lower after the decision, despite the valuation concerns.

Until the developed stock markets retreat from record levels of valuation, we expect to have less portfolio exposure to equities going forward and more exposure to event driven situations such as liquidations and reorganizations that are not so dependent on the vicissitudes of the stock market for their investment return.

What will the subordination of the equity class mean for the range of valuations that can be expected over the next couple of years?

This helps explain our preference for European, Japanese and emerging market (EM equities), where valuations look more reasonable and gains have been driven more by expected earnings growth.

We wouldn't expect repeat performances in 2014, as our winners and their rivals will wrestle with lofty equity valuations, policy - related volatility, a still - recovering economy, and the specter of rising rates.

Also given the low growth, low inflation and low interest rate environment and the somewhat above average valuation numbers, one has to expect lower nominal returns from equities as compared to the past.

This is logical: given the same expected cash flows, it would not be reasonable for the equity's value to depend on the valuation method.

Low Quality's Round Trip Bad News Bulls Stock Performance Following the Recognition of Recession The Beginning of the Middle Experimenting with the Market's Median Valuation Anchored Inflation Expectations and the Expected Misery Index Consumer Spending Break - Down Recessions and the Duration of Bad News Price - to - Sales Ratio May Prove Valuable International Markets Show Important Divergences Fixed Investment and the Technology Rally Global Yield Curves, Earnings Growth, and Sector Returns Recessions and Stock Prices Adjusting P / E Ratios for the Market Cycle Private Equity and Market Valuation Must Stocks Rise Following a Cut in the Fed Funds Rate?

In the context of your series on valuation metrics and equity expected returns, I'd be interested in your thoughts on our meta - study of market expected returns using various smoothed PE ratios, the Q ratio, mkt cap / GNP and regression to trend measures.

The amount of return you can expect from a diversified equity portfolio is inversely correlated to the market valuation at the start of the holding period.

However, based on current valuations (using the Shiller CAPE ratio as of May), expected returns on U.S. stocks are now only about 6.1 %, while those for international equities are 7.9 %.