Sentences with phrase «higher equity returns»

Remember, too, that rate increases like this are likely to happen only if the economy gets red hot, which would probably lead to higher equity returns on the other side of your portfolio.
Nowadays, companies are increasingly global and multi-sector, which means that investors could be missing out on potentially higher equity returns by continuing to base their equity allocation decisions purely on traditional geographic or sector approaches.
High interest rates lead to higher equity returns 10 years out.
It has some of the most innovative and entrepreneurial companies in the world, and historically, U.S. equities have delivered some of the highest equity returns in Canadian dollar terms, says Wong.
I don't understand what you mean when you say they are not a magic solution to high equity returns.
Rather, I think index funds and index ETFs are the perfect solution for high equity returns for most people.

Not exact matches

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.
Private equity returns remained strong but were lower than the prior year quarter, while income from our fixed income investment portfolio increased due to a higher average level of fixed maturity investments and higher short - term interest rates.
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.
According to BlackRock's equity team, an annual return in the «mid to high single digits» is not an unreasonable target in the current environment.
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.
Some of the effects were measurable — boards with more women are linked to a 53 % higher return on equity, according to one study, and their companies go bankrupt less frequently.
Not because it is attractive as a repository for equity capital, but precisely because it is so unattractive, the low - return business must follow a high retention policy.
We have no corporate solution to this problem; high inflation rates will not help us earn higher rates of return on equity
But after five straight years of positive returns, sentiment among equity analysts neared an all - time high, with the Wall Street consensus calling for an 11.1 % gain, according to a recent study by Bespoke Investment Group.
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.
Given the concentration in Canada's banking sector, it's likely that at least some of the banks will be designated as such, requiring higher capital levels and putting even more pressure on their return on equity.
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.
He then looks for an above - average return on equity and a high percentage of the management's own net worth invested in the company.
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.
With equity valuations at historic highs and government bonds barely eking out a return, junk bonds offer solid yields at a good price, he reasons.
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.
The report found that banks with more than $ 10 billion of assets generally had higher returns on assets and equity, except during the worst of the financial crisis.
There is no share holder buyer of last resort, and so equity buyers can demand a higher return than bond holders.
A high return on equity is also a must for the growing company to attract additional equity capital.
It intends to give investors higher returns by eschewing market capitalization weightings in and across equity asset classes.
The result in the early 1980s when debt - leveraged buyouts really gained momentum was that financial investors were able to obtain twice as high a return (at a 50 % corporate income tax rate) by debt financing as they could get by equity financing.
It demonstrates that a global equity framework can provide diversification and higher long - term risk - adjusted returns for investors from high growth countries who often hold home - biased equity portfolios that can have high concentration risk.
The HRC considered the fact that, despite credit write - downs in its home equity loan portfolio and a Visa - related litigation expense accrual, the Company's business performance for 2007 was strong, as exemplified by one of the highest returns on equity and returns on assets in our Peer Group.
A high return on equity usually means that the company has an above - average financial operating ratio and can often fund projects internally.
With debt financing, the fixed repayment schedule and the high cost of loan repayment can make it difficult for a business to expand while with equity financing, money is invested in the business in exchange for equity - there is no fixed repayment schedule and investors generally have a long term goal of return on investment.
Obviously, shareholders in a company with a low return on equity would be better off liquidating the company or paying 90 % of earnings out in dividends since investors may be able to earn a higher return from another investment.
The MSCI USA Quality Index is comprised of 125 stocks in the MSCI USA Index that have high quality scores based on return - on - equity, earnings growth and financial leverage.
An Improving or High Return on Equity — Return on equity has often been offered as a measure of management's abilEquityReturn on equity has often been offered as a measure of management's abilequity has often been offered as a measure of management's abilities.
The bank has the highest return on equity among the Canadian lenders at 19.3 per cent.
To the extent that lower Treasury yields are even weakly associated with higher equity valuations, recognize that this effect is also expressed over time as lower subsequent stock market returns.
iShares S&P ® / TSX ® 60 Index Fund («XIU»), iShares S&P / TSX Capped Composite Index Fund («XIC»), iShares S&P / TSX Completion Index Fund («XMD»), iShares S&P / TSX SmallCap Index Fund («XCS»), iShares S&P / TSX Capped Energy Index Fund («XEG»), iShares S&P / TSX Capped Financials Index Fund («XFN»), iShares S&P / TSX Global Gold Index Fund («XGD»), iShares S&P / TSX Capped Information Technology Index Fund («XIT»), iShares S&P / TSX Capped REIT Index Fund («XRE»), iShares S&P / TSX Capped Materials Index Fund («XMA»), iShares Diversified Monthly Income Fund («XTR»), iShares S&P 500 Index Fund (CAD - Hedged)(«XSP»), iShares Jantzi Social Index Fund («XEN»), iShares Dow Jones Select Dividend Index Fund («XDV»), iShares Dow Jones Canada Select Growth Index Fund («XCG»), iShares Dow Jones Canada Select Value Index Fund («XCV»), iShares DEX Universe Bond Index Fund («XBB»), iShares DEX Short Term Bond Index Fund («XSB»), iShares DEX Real Return Bond Index Fund («XRB»), iShares DEX Long Term Bond Index Fund («XLB»), iShares DEX All Government Bond Index Fund («XGB»), and iShares DEX All Corporate Bond Index Fund («XCB»), iShares MSCI EAFE ® Index Fund (CAD - Hedged)(«XIN»), iShares Russell 2000 ® Index Fund (CAD - Hedged)(«XSU»), iShares Conservative Core Portfolio Builder Fund («XCR»), iShares Growth Core Portfolio Builder Fund («XGR»), iShares Global Completion Portfolio Builder Fund («XGC»), iShares Alternatives Completion Portfolio Builder Fund («XAL»), iShares MSCI Emerging Markets Index Fund («XEM») and iShares MSCI World Index Fund («XWD»), iShares MSCI Brazil Index Fund («XBZ»), iShares China Index Fund («XCH»), iShares S&P CNX Nifty India Index Fund («XID»), iShares S&P Latin America 40 Index Fund («XLA»), iShares U.S. High Yield Bond Index Fund (CAD - Hedged)(«XHY»), iShares U.S. IG Corporate Bond Index Fund (CAD - Hedged)(«XIG»), iShares DEX HYBrid Bond Index Fund («XHB»), iShares S&P / TSX North American Preferred Stock Index Fund (CAD - Hedged)(«XPF»), iShares S&P / TSX Equity Income Index Fund («XEI»), iShares S&P / TSX Capped Consumer Staples Index Fund («XST»), iShares Capped Utilities Index Fund («XUT»), iShares S&P / TSX Global Base Metals Index Fund («XBM»), iShares S&P Global Healthcare Index Fund (CAD - Hedged)(«XHC»), iShares NASDAQ 100 Index Fund (CAD - Hedged)(«XQQ») and iShares J.P. Morgan USD Emerging Markets Bond Index Fund (CAD - Hedged)(«XEB»)(collectively, the «Funds») may or may not be suitable for all investors.
Well, it will certainly lift the rate of return investors expect from stocks, but bulls insists that with earnings growing 20 percent this year, the expected return may be sufficiently high, so that there will not be any shift out of equities, that corporations are going to make enough money to more than compensate for higher rates.
Gross criticized the Siegel constant (a 6.6 % annual real return on equities) as an artifact of a high U.S. 20th - century growth rate that is unsustainable in the «new normal» economy.
Equity crowdfunding is an equally high - risk investment strategy and because it's still relatively new, pinning down an average rate of return is difficult.
Why leave money in equities, and risk another year of lost opportunity, when fixed income securities seem to be on the road to higher (and less risky) returns?
And private equity's high return targets could reduce the danger of overpaying.
About RBC > Media Newsroom > News Releases > Rebounding Canadian equities drive Canadian pension returns higher in third quarter: RBC Investor & Treasury Services
Moreover, a sustained move toward higher inflation is a risk to most investors and investment strategies, given that rising inflation has historically been a drag on equity and bond returns, making diversification beyond mainstream asset classes more critical.
A body of academic research led to identifying profitability as a dimension of higher expected returns that can be pursued across equity markets.
The tax collector (a euphemism for taxpayers) suffers as investors across the economic spectrum borrow funds so as to leverage a higher return on equity.
Like IRR, the higher the equity multiple, the greater the projected return on your initial investment and the greater the potential risk.
Managers of big banks claim that they can't fund themselves with more equity and still lend as much as they do now because stock holders require a higher rate of return than lenders do.
The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself.»
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