Sentences with phrase «high future returns»

You do the same when taking out a mortgage at low rate (like three percent) or using school loans to improve your education (which will, in theory, provide high future returns).
If an active fund skillfully arbitrages the prices of individual shares — buying those that are priced to offer high future returns and selling those that are priced to offer low future returns — it will earn a clear micro-level benefit for itself: an excess return over the market.
The lower the starting yield, the lower the future returns over the long haul and the higher the starting yields, the higher the future returns over the long haul.
They hypothesize that loss averse investors may perceive value stocks as riskier than they truly are, given the stocks» recent underperformance, and may therefore require a higher future return from these investments.
By automatically reinvesting dividends, investors purchase additional fund shares on a regular basis, which over time has the potential to lead to higher future returns.
While no one disputes that lower present prices lead to higher future returns, all else equal, and that higher present prices lead to lower future returns, ell else equal — all else is never equal, and «lower» and «higher» that what?
Money that the rental property companies spend is reinvested into the businesses, where it may generate higher future returns.
Lack of demand leads to lower prices and higher future returns.
We remain convinced that mean reversion will prevail over a long time horizon and that rebalancing will generate higher future returns.
Consequently, it does not necessarily follow that simply because a company is technically trading at a sound valuation, that it can generate a high future return.
You would have to forgo the spread between property and these other investments in the name of higher future returns and know that was going to happen.

Not exact matches

Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft; 6) the effect on aircraft demand and build rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness of any interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations in foreign current exchange rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
These policies are known to have high expenses but may offer steady returns, tax - deferred growth and no exposure to income taxes in the future.
In reality, when investors are paying extremely high prices for each dollar of earnings that equities produce, market math dictates that future returns will be the reverse of what the bulls are claiming — extremely low.
«The best predictor of future returns is whether you buy at low or high prices relative to earnings,» says Chris Brightman, chief investment officer of Research Affiliates, a firm that oversees strategies for $ 161 billion in mutual funds and ETFs.
«The return on investment for the best full - time programs is very high and I predict that trend continuing for the foreseeable future,» says Paul Danos, dean of Dartmouth College's Tuck School of Business.
The key thing you should notice is that the returns on the smaller in situ projects are higher — this is because they are cheaper to build and operate per barrel of future production.
The CAPE isn't projecting high earning growth from here, it's projecting what it always projects from these levels, low returns in the future
Returns are calculated after taxes on distributions, including capital gains and dividends, assuming the highest federal tax rate for each type of distribution in effect at the time of the distribution Past performance is no guarantee of future results.
Investing is an important building block for a sound financial future — and it can help you get higher returns on your money than you'd get from a savings account or certificate of deposit.
At longer time frames, the basic relationship generally still holds: Higher U.S. stock market valuations are associated with lower future returns.
In fact, according to our analysis, though higher U.S. valuations were associated with lower future returns, there were numerous instances in the past, particularly in the mid-to-late 1990s, when very high U.S. valuations coincided with strong returns over one - and three - year horizons.
While higher valuations absolutely do mean lower future returns, it's all but impossible to know when to expect them.
But it looks like a high probability bet that the spread between the returns on stocks and bonds should be wider in the future than it has been for the past three decades or so.
As a result, past returns have been somewhat higher than 10 % annually, but that also means that stocks are now priced to deliver far less than 10 % annually in the future.
There are alternatives that can protect investors from future inflation that are less volatile (TIPS) or offer a better return profile (REITs and even high quality dividend stocks) than commodities.
This follows from the Iron Law of Valuation — the higher the price an investor pays for a given stream of expected future cash flows, the lower the long - term return one should expect.
There's certainly a high probability that future stock market returns will be lower than the annual 11 % or so that has been seen since the late - 1940s.
High valuations versus history point to more muted future returns across most asset classes.
And make sure your future investment return calculations are reasonable — despite historical stock market returns lately, experts say you shouldn't count on higher than a 4 percent return going forward.
The higher the price an investor pays for a given stream of future cash flows, the lower the long - term return an investor can expect.
It's not just that future returns will be lower from current interest rate levels than they've been in the past; it's that volatility in bonds will be much higher from -LSB-...]
Higher valuations today typically mean lower returns in the future.
CVS is extremely well positioned to succeed in such a future if it can move fast enough to acquire a health plan, and Aetna presents the lowest risk and highest return target.
I've often called it the Iron Law of Valuation: the higher the price you pay today for a given stream of future cash flows, the lower your rate of return over the life of the investment.
Despite a challenging energy market, we believe the management team has a solid plan for the future, as CEO John Christmann recently changed the company's capital allocation process to better direct capital to the highest internal rate of return projects, regardless of where they are located.
If buying at today's price and selling at that future value can deliver a 15 % pa return it's likely to be an attractive investment notwithstanding a higher multiple.
The higher the current price rises, the more expected future returns are converted into realized past returns, and the less expected future return is left on the table.
When sentiment is low (high), the average future returns of volatile stocks exceed (trail) those of bond - like stocks.
USA Today ran a piece noting that the historical average return on stocks has been 10.4 %, with various analysts voicing the opinion that, basically, last year's sub-par return increases the odds that future market performance will revert higher.
For any future stream of income, the higher the price you pay, the lower the annual rate of return you will earn.
The reason that every man and his dog was not eager to do this trade is that the cost of storing oil is now so high that even a contango that represents a potential 40 % annualised return on a physical - futures arbitrage is not very profitable.
We believe that Comcast has the potential for ample growth across all business lines, and we are especially optimistic about future results from its commercial - services sector, which is Comcast's most rapidly growing segment and could be one of its highest return investments.
High inflation, and associated high interest rates bias investment decisions against long - lived projects because of the high discount rates applied to future retuHigh inflation, and associated high interest rates bias investment decisions against long - lived projects because of the high discount rates applied to future retuhigh interest rates bias investment decisions against long - lived projects because of the high discount rates applied to future retuhigh discount rates applied to future returns.
By holding the security during a period when the yield - to - maturity is falling, you not only earn a return that is higher than the original yield to maturity, you earn a return that is dramatically higher than the future yield - to - maturity!
In the U.S. and Europe today, a high starting point for valuations does create a headwind for future returns, we believe.
The higher the price you pay today for each dollar you expect to receive in the future, the lower the long - term return you should expect from your investment.
Taking on more equity risk when the expected future returns are lower than in the past and downside risks higher makes little sense to me.
This, in turn, propels valuations of risk assets higher, at the expense of lower projected returns in the future.
At the market's actual 2000 peak, valuations were so high that even a future price / peak earnings ratio of 20 could have been expected to result in a nearly zero annualized returns over the following 10 years.
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