The rate increases occurs at the beginning of the year, resulting in
an immediate decline in the value of the fund.
Not exact matches
Credit concerns typically create a spike
in demand for default - free assets such as U.S. government liabilities, so even though there is a much larger float than is likely to be sustained over time without inflation as the ultimate outcome, credit concerns tend to support the
value of these liabilities and hence mutes
immediate inflation pressures (essentially, monetary velocity
declines as these liabilities are sought as a default - free store of
value).
Confirming what we learned from Chart 1, the total
value of a stock yielding 5 % that suffered an
immediate 50 %
decline in price and never recovered, intersects with the
value of the unchanged black price line at 14.9 years.
Predictably, there was an
immediate shire - wide
decline in property
values.
Life settlements are arrangements
in which seniors
in declining health sell their life insurance policies for a portion of the face
value and receive
immediate cash.