Sentences with phrase «higher equity valuations in»

In the US, rates were much lower in 2002 - 03 than in 1999 - 2000, but we certainly didn't have higher equity valuations in 2003 than in 2000.

Not exact matches

For one, investors are going to have to get comfortable taking on more risk in their equity portfolios by buying stocks at higher valuations.

Asia and Latin America are not risk - free, but «there seems to be sense in buying equities in these regions on similar or lower valuations than their counterparts in the developed world given that dividend growth is likely to be superior, given higher economic growth potential.»

During the economic boom a decade ago when private equity firms were enjoying sky high valuations, they also took money from sovereign wealth funds in Abu Dhabi, Kuwait, Singapore, and China.

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 current equity market valuation is certainly stretched in historical terms but it does not appear unreasonable based on the high level of corporate profitability,» he said.

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.

The determination of Albertsons» majority owner, private equity firm Cerberus Capital Management LP, to carry out the IPO despite volatility in the stock markets underscores its confidence that it can fetch a high valuation for Albertsons.

yields will hit the highs on close end of the day... equity markets setting up to be slammed tomorrow maybe but today they have run over weak shorts in the face of rates... the federal reserve see's this and again will wonder if they are behind on hikes, strong data, major expansion in credit, lack of wage growth rising bond yields and ballooning debt... rates will go much higher and equities will have revelations as to what that means for valuations

Equities really have had the best of all worlds these past few years, with earnings growth in the double digits and financial conditions remaining very accommodative, despite the recent rise in both short - and long - term interest rates.1 The combination of rising earnings growth and benign financial conditions is a powerful set of tailwinds which usually drives stock valuations higher.

These behavioral finance influences can skew a portfolio's overall allocations toward an overemphasis of potentially higher - yielding equities that in some instances may represent more downside risk than upside potential at current valuation levels.

«M&A activity globally is very high, which is common in the late stages of an equity bull market as both private equity and corporate owners look to cash in on rich valuations,» Lait explains.

«Many participants reported that their contacts had taken the previous month's turbulence in stride, although a few participants suggested that financial developments over the intermeeting period highlighted some downside risks associated with still - high valuations for equities or from market volatility more generally,» the minutes said.

One challenge to our growth investing strategy in 2018 may be the high level of investor skepticism surrounding current valuations for US equities in general, and for technology in particular.

But private equity valuations are too high now, and the government doesn't want foreigners in the distressed real estate market.

The impact of a stronger dollar is likely to remain a hurdle for earnings, but U.S. equities are also contending with high relative valuations and a likely increase in interest rates by the Federal Reserve (Fed) in the second half of this year.

Our view for broader and stronger economic growth this year, with only slightly higher interest rates from current levels, is favorable for equity valuations — especially after the latest decline in equity prices.

Of course, that final line — that there is a new, higher «equilibrium valuation of equities» — is surely to remind some market historians of Irving Fisher's famous line that stocks had reach a new «permanently high plateau» on the eve of the 1929 stock market crash which ushered in the Great Depression.

Some members of the FOMC apparently «commented that the recent decline in equity prices needs to be viewed in the context of overall valuation levels, which they saw as relatively high, and a couple noted that volatility had begun to subside,» according to the Fed's minutes.

Now, as many investors worry about a global growth slowdown, rising rates and higher volatility in U.S. equity markets, dividend growers offer potential opportunities due to their healthy balance sheets, as well as better valuations, and lower volatility.

Putting aside the performance of bonds during the bear market beginning in 1980 (both because the starting yields on Treasuries were so high but also because the bear market was relatively mild as the decline began from relatively low levels of valuation), what's interesting about the above chart is how dependably bonds protected a portfolio during equity bear markets.

These nearly zero interest rates is what drove many U.S. and European fixed income investors towards higher income opportunities in their own home countries — so, they bought more equities, REITs and dividend growth stocks over the last 5 years, driving up valuations (though the February correction has brought back some sanity.)

Bottom line: U.S. equities are the least dirty shirt of global equity markets, although high valuations keep our return expectations in check.

Outside of a brief episode in late 1929 and the period from February 1997 to August 2001, US equity valuations have never been higher than they are today.

It's definitely very high - risk, but if you can pick successful startups before their valuation shoots up, get some equity, help them succeed, and they eventually go public or get acquired, you can stand to bring in some big returns.

A trio of articles covers high year - to - date returns, valuations and, consequently, increased risk of small - cap equities, especially those with growth characteristics and in the technology sector.

Now, as many investors worry about a global growth slowdown, rising rates and higher volatility in U.S. equity markets, dividend growers offer potential opportunities due to their healthy balance sheets, as well as better valuations, and lower volatility.

Equities are currently the third highest in valuation terms we have ever seen.

With high market valuations and an ever - lasting bull market, one might get scared to invest in equities (stocks) and stay on the sidelines.

Robust consumer spending is typically a friendly factor for the equity market, and may provide a reason to maintain equity exposure, in my view, despite high equity valuations seen over the past year and the lack of any significant market correction.

Investors seek more risk in equities as bond yields get low... And higher equity valuations make bond investors believe it's just as safe as it was before when both debt and equity valuations were lower (and objectively less risky).

In this age of ultra-low interest rates and sky - high equity valuations, cheapness is nearly a forgotten concept.

When everyone believes in the inevitability of stocks, à la «Dow 36,000» (we'll get there by 2025 or so), equity valuations are high, past equity performance has probably been great, and the future equity premium is small — think 1929, 1972, August 1987 and February 2000.

Higher numbers of mature working - age adults (ages 40 — 60) go hand in hand with higher equity valuation levels and lower yHigher numbers of mature working - age adults (ages 40 — 60) go hand in hand with higher equity valuation levels and lower yhigher equity valuation levels and lower yields.

Lower rates do not always and everywhere imply higher equity valuations — see Japan over the past 25 years — two bear markets of 60 % each in a ZIRP environment.

Equity valuations are now extremely high, with global equity markets having added close to US$ 9.5 tn in market capitalisation over the course ofEquity valuations are now extremely high, with global equity markets having added close to US$ 9.5 tn in market capitalisation over the course ofequity markets having added close to US$ 9.5 tn in market capitalisation over the course of 2018.

In the current environment of rising interest rates, lower costs, and higher loan growth, we believe earnings and equity valuations for the banking sector should recover in earnesIn the current environment of rising interest rates, lower costs, and higher loan growth, we believe earnings and equity valuations for the banking sector should recover in earnesin earnest.

It seems to me hard to believe strongly in both ideas at the same time (high valuation, leveraged equity investments).

That's because when stocks have high multiples and tight spreads, there's little upside in holding them (future return has been brought forward to today) but there's lots of downside due to their equity valuations tendency to mean revert.

Some like Rebetez would have liked to see a value screen for U.S. equities, given the high valuations that have arisen in the Trump rally.

Dividend Growth Investor: My understanding is Japanese equities traded at sky high valuations and ultra low dividend yields in the 80s.

In contrast, the impact of an increase in inflation expectations has a more muted impact on equity valuations as the impact of the higher cost of capital is offset by higher nominal earnings growtIn contrast, the impact of an increase in inflation expectations has a more muted impact on equity valuations as the impact of the higher cost of capital is offset by higher nominal earnings growtin inflation expectations has a more muted impact on equity valuations as the impact of the higher cost of capital is offset by higher nominal earnings growth.

When an assets valuation is high (i.e. equities in 2000) my target equity allocation would be lower than normal.

When an assets valuation is low (i.e. equities in March of 2009) my target equity allocation would be higher than normal.

Putting aside the performance of bonds during the bear market beginning in 1980 (both because the starting yields on Treasuries were so high but also because the bear market was relatively mild as the decline began from relatively low levels of valuation), what's interesting about the above chart is how dependably bonds protected a portfolio during equity bear markets.

That said, the risk premium factor shows that the largest gains tend to come in the southwest quadrant: low equity valuations and high Baa bond yields, which is a perfect set - up for mean reversion.

In addition to limited investment alternatives, low interest rates and high equity valuations make contributing to a 529 plan today unappealing to me.

The outcome is so binary, in hindsight an equity valuation will be far too low, or high... I often notice that the market / investors can ignore debt for long periods of time — i.e. they value a company almost exactly like its debt free peer.

David Kostin, Goldman Sachs» chief U.S. equity strategist, explained that investor demand for «value» has been so pervasive that low - valuation stocks had outperformed higher valuation peers by 12 percent in 2013.