In a bubble, those two factors become completely detached from reality, and
expectations about future returns become increasingly reinforced not by fundamental data, but by price action alone.
Consistently higher percentages of respondents
report expectations about the future to be «the same» rather than better or worse, in comparison to the percentages characterizing current conditions as «normal» rather than good or bad.
Trends in consumer sentiment have shown some divergence recently as attitudes toward current economic conditions continue to become more optimistic while
expectations about future conditions reflect some caution.
Nevertheless, understanding how interest rates or
expectations about future interest rates affect the value of stocks is useful because it explains why the stock market changes dramatically when central banks adjust their interest rate policies.
Conference Board economist Lynn Franco said that the improvements in consumers» confidence and
expectations about the future indicate that the recent strengthening in overall economic growth should continue in the second half of the year.
The authors, however, assert that bubbles can lead to too -
high expectations about future housing, which will prevent mortgage lenders and securitizers from making optimal decisions.
For instance, a fellow who says there is no order in nature — nothing like laws of nature — that's not good common sense, because every living animal wants to
make expectations about the future on the grounds that there are legitimate expectations about it.
Such statements include those related to the company's
expectations about future events or financial performance, including the potential acquisition of Major League Fantasy, the anticipated benefits of the potential acquisition, anticipated growth opportunities (including anticipated growth in the markets in which MLF operates) and access to capital, and are not historical facts.
Moynihan was especially concerned about the large number of boys growing up in «broken families, dominated by women, never acquiring any stable relationship to male authority, never acquiring any set of
rational expectations about the future....»
With this information we analyzed if students»
subjective expectations about their future success in college were related to non-cognitive skills and whether they are realistic, as compared to student's performance trajectory at the end of their first year in college.
If interperiod tax allocation is useful for financial analysis, the effective rate should generate
valid expectations about future cash outflows for income taxes.
The survey also
covers expectations about future prices in the EU emissions trading scheme and credits under the Clean Development Mechanism, the Australian price floor and linking with the EU scheme, and the future of Australia's national emissions target.
The inaugural Australia Carbon Pricing Survey
elicits expectations about the future of carbon pricing from experts working for Australia's largest greenhouse gas emitting companies, the carbon finance and investment industry and selected other experts.
From all the best available data and modeling, and
expectations about future climate, these are the kinds of fires and post-fire climates that we're going to see more of in the future,» said Brian Harvey of the University of Colorado Boulder.
The periodic reports should explain the fund's recent performance, the reasons for any deviations from expected performance, suggested revisions to
expectations about future performance, and the actions that the manager is taking to achieve performance goals.
Expectations about the future path of the cash rate will affect financial market prices and returns, asset prices and the expected prices of goods, services and factors of production (including labour).
Consistently higher percentages of respondents
report expectations about the future to be «the same» rather than better or worse, in comparison to the percentages characterizing current conditions as «normal» rather than good or bad.
We hope that, by clarifying
our expectations about future policy, we can provide individuals, families, businesses, and financial markets greater confidence about the Federal Reserve's commitment to promoting a sustainable recovery and that, as a result, they will become more willing to invest, hire and spend.
They have a direct influence on confidence and
expectations about the future.
When your people are optimistic they don't just have positive attitudes and
expectations about their future, they are also willing to take risks, try new ideas, and think outside the box.
While consumers were more positive about current economic conditions this month than last month,
their expectations about the future were actually more pessimistic, the University of Michigan data reveals.
The sentiment index is composed of two parts: consumers» views of current economic conditions and
their expectations about future conditions.
It also provides insight into Americans» views about job prospects and earnings growth and
their expectations about future spending and access to credit.
However, CBO estimates much of that increase is due to
expectations about future changes in law.
First, it reflects
your expectations about the future.
The subcomponents show that consumers have stronger reactions to current conditions than to
expectations about the future, as indicated by the higher volatility of the present situation index.
It is the first date which means that you can express
your expectations about the future but do not make it the only topic in your conversation.
Since it is supposed to be
an expectation about the future, it can not be computed empirically as the future has not yet happened.
When gathering information to identify the risk and return characteristics of the many asset class indexes that belong in a diversified portfolio, the more quality long - term data you have, the more accurate and probable are
your expectations about future outcomes.