Sentences with phrase «imply higher equity»

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.

Not exact matches

According to Bloomberg data, the VIX Index, a proxy for U.S. equity market implied volatility, traded over 50 on Monday morning, the highest level since the financial crisis.

While the early - 2017 Federal Reserve minutes «expressed concern [about] the low level of implied volatility in equity markets,» it is worth noting that the SPX implied volatility levels at both 80 % and 90 % moneyness (corresponding with out - of - the - money puts used for portfolio protection) generally were much higher than the VIX levels.

Meanwhile, the PE10 at 26 sits in its highest quintile, implying that equities are severely overpriced.

Of course, when the underlying ratio is high, it implies that people are attributing high valuations to equities relative to other assets, and vice-versa.

Finally, his analysis implies that high equity exposures — even over a period of decades — do not materially enhance returns.

When the interest rates are low enough to allow for positive leverage, investors can boost significantly their return on equity by borrowing a high percentage of the acquisition price (which implies high LTV ratios).