Not exact matches
«Despite better
than expected revenue
growth... the lasting impression will be continued cost
inflation, margin degradation, and higher CapEx,» Nathanson wrote.
Allan Small, a senior investment adviser with DWM Securities, likewise recommends
growth - with - income stocks because they can beat
inflation with a one - two punch, rather
than just with capital gains or dividends.
Tuesday's below - consensus ISM and construction spending report, along with a hotter -
than - expected prices paid report, played perfectly into the bear narrative of slower
growth and higher
inflation.
While gold is often considered an
inflation hedge, Julius Baer said in a note, the fact that price pressures were being driven by confidence about
growth rather
than dollar weakness and rising oil prices meant it was failing to react positively.
Hence the question: Is it reasonable to expect that marginally looser policies would now lead to more
than tripling of the
growth rate (to 1.5 - 2 percent) over the next two years, while raising the
inflation rate from -0.3 percent to 2 percent — as the Bank of Japan is promising?
Euro zone officials received a slew of good news on Tuesday morning with stronger -
than - expected
growth and
inflation figures and a falling unemployment rate.
The situation isn't easy for President Draghi who has to deal with a stronger
growth, but
inflation that is lower
than the ECB's target and a stronger currency.
«Prospects for renewed gains, other
than a relief rally following the election results, would require somewhat larger wage increases and continued job
growth as well as the maintenance of low
inflation.»
If the bulls are right, EPS would grow 8.5 points faster
than the economy (assuming 2.5 % real annual GDP
growth plus 2 %
inflation) for the next ten years, hitting over 16 % of national income by 2028.
Traders are suddenly worried about interest rates (although anyone older
than 30 has to be amused that 2.85 % on the Treasury 10 - year is a source of panic), worried about
inflation (although after the last decade of stagnant wages, Friday's 2.9 % rise should be cheered, not jeered), and worried about a tax - fueled spike in
growth (with this report from Powell's Atlanta colleagues leading the way.)
In a research note that included upgrades to his
growth and
inflation forecasts, Mortimer - Lee also said he was revising his Fed call to include one more hike in 2018
than the central bank is currently projecting.
If oil prices do not escalate, the government's budget outlook will deteriorate in the billions of dollars, through a combination of slow economic
growth and lower
than anticipated
inflation.
Powell in statements throughout the year, culminating with his recent Senate confirmation hearing, has been clear he sees little risk of
inflation that would prompt the Fed to raise rates faster
than expected, and takes weak wage
growth as a sign that sidelined workers remain to be drawn into jobs.
Any earnings
growth will be unevenly distributed, with planned cuts to working - age benefits and the potential for higher
inflation in the future hitting low - income households harder
than high - income households, the IFS said.
The Fed reckons U.S. gross domestic product could expand by as much as 2.7 % in 2016, which would be considerably faster
than the rate of
growth — roughly 2 % — that policy makers think the American economy can handle without stoking
inflation.
The extra
growth you get on your stock market portfolio, compounded over 30 years, will more
than make up for what you lose on rental
inflation.
The worst case scenario is that the country will experience what economists call a «hard landing,» essentially a major slowdown in GDP
growth, to less
than 5 % or the approximate rate of
inflation.
The best wage
growth since 2009 sparked speculation that incoming Federal Reserve chair Jerome Powell may have to raise interest rates more
than the three times the central bank has forecast in order to tame
inflation this year.
If the Bank of Canada were to tolerate
growth faster
than that for too long, it would risk exceeding its
inflation target.
We expect the BoC will likely raise rates in 2018 but at a slower pace
than a U.S. Federal Reserve responding to an uptick in
growth and
inflation.
In the United States,
growth is flat due partly to the strong dollar; in the Euro Area, low investment, high unemployment and weak balance sheets weigh on
growth; in Japan, both
growth and
inflation are weaker
than expected.
Markets suspected that the future contained less
growth and more
inflation than advertised.
But as a result, the country has better
growth prospects now
than its high -
inflation neighbors.
Dividend
Growth Investing is an income strategy of investing in companies that have a barrier to entry (large moat) and consistent history of increasing dividends by a rate higher
than inflation.
How realistic is this proposal to keep the
growth in program expenses to no more
than the
growth in population and
inflation?
The network reports, «Chinese
inflation data released on Monday, suggested that the economy is cooling faster
than expected, while employment data out of the U.S. on Friday indicated that jobs
growth was tepid for a fourth straight month in June.»
In fact the experience of the past year, as the Deputy Governor noted recently, is that while
growth seems to be turning out weaker
than expected at the end of last year, underlying
inflation seems to be turning out higher.
In my experience, a dividend
growth portfolio strategy seems to be performing better as an investment
than owning a home, in my honest opinion, I would rather rent in a great area
than own a home in that area, jeez if I were able to get a lease agreement for 10 years indexed at
inflation or at 2.5 % increase annually I would take it and take my down payment and invest it in my portfolio, and continue to contribute the max in my 401K, HSA, and Roth IRA, while enjoying living in a low tax bracket because of my contributions.
World
growth will remain low on average but negative in the UK and Europe; price
inflation will remain sufficiently subdued for a while longer so as to impose no constraint on monetary expansion; central banks will sustain a regime of negative real interest rates and rapid monetary expansion; the risk of a eurozone collapse is off the table for now; finally, stock markets should continue to perform better
than expected, even though the four - year old cyclical bull market is long by historical standards.
Assuming even a 4 % annual
growth rate in prices —
inflation plus about 1 to 2 percentage points — property prices should be significantly higher
than where they are now.
Core
inflation has been lower
than expected in recent months... Core
inflation is expected to increase gradually over coming quarters, reaching 2 per cent by the middle of 2013 as the economy gradually absorbs the current small degree of slack, the
growth of labour compensation remains moderate and
inflation expectations stay well anchored.
The Aussie will decline to 72 US cents by year - end as restrained economic
growth and
inflation mean the Reserve Bank of Australia will take a «few years» to catch up with the Federal Reserve in raising borrowing costs, said Philip Moffitt, Asia - Pacific head of fixed income in Sydney at the firm, which oversees more
than $ US1 trillion.
Comparing our opportunity to Japan's, isn't our sovereign credit risk much higher
than Japan's in terms of per capita GDP
growth, structural balance - of - payments deficit, history of default and history of
inflation?
«With the Italian 10 - year bond yielding less
than its US counterpart, with clear signs of accelerating
growth and
inflation in Europe, and a depressed Euro adding fuel to the fire, assets correlated to European rates will be vulnerable in 2017,» says Mitchell.
Chair Yellen has consistently maintained that as long as nominal wages grow no faster
than the Fed's
inflation target of 2 percent plus productivity
growth, which is running at (a truly yucky) 1 percent these days, wages can grow 3 percent without generating inflationary pressures.
-- Chair Yellen has maintained that wage
growth consistent with stable
inflation is 3 - 3.5 %, at least a point faster
than the current rate (btw, why 3 - 3.5 %?
These include the problem of public communication, where the public is likely to be more understanding of
inflation than the more nebulous concept of nominal
growth, as well as the problem that nominal income is often subject to sizeable revision by the statistical agency.
And for all the muddle, the one thing that seems clear is that the risks to the economy and particularly the labor market — which is generating solid job
growth and even some wage gains (for which we should all give Chair Yellen and the Fed serious credit)-- remain «asymmetric:» there's a greater risk of needlessly slowing non-inflationary
growth than there is of
inflation accelerating.
The Fed has made good on two interest rate hikes so far in 2017, but based on weaker -
than - forecast
inflation and
growth numbers, it will likely fall short of the four rate hikes it planned late last year.
On the short - side of the yield curve, the consensus seems to interpret the Federal Open Market Committee's recent use of the word «gradual» as an indication that it will allow
inflation to run higher
than 2 % in order to make up for the last 20 years of below - target
growth.
In a similar vein, EM central banks will hike rates in the coming quarters, but this will be in a countercyclical fashion warranted by stronger domestic
growth and
inflation rather
than the pro-cyclical tightening that we had in 2013.
Whether that means Canada will enjoy below - potential
growth or that potential has taken a larger hit
than the Bank of Canada currently believes is another matter, but is certainly one of the larger monetary policy questions that remains unanswered, especially with core
inflation lingering above 2 percent.
Now with those same - restaurant sales assumptions and accelerated new restaurant
growth, we expect meaningfully stronger earnings
growth in fiscal 2013
than we had in fiscal 2012, and that's because we were burdened in 2012 with food cost
inflation headwinds that we don't anticipate in 2013.
End - of - week profit taking prevented the U.S. dollar from extending its gains on Friday despite stronger -
than - expected first - quarter U.S. GDP
growth and an upward revision to the University of Michigan's consumer confidence index.With that in mind, steady
growth and rising
inflation expectations should foster further gains in the dollar next week as investors are convinced that the Federal Reserve will use the May meeting to prepare the market for a June hike.
Euro zone
inflation eased in June because of more moderate energy price rises, but the slowdown was less
than expected by markets and the core measure of price
growth the ECB keenly watches increased by more
than anticipated.
Ontario government spending has been increasing faster (by about 3 % per year)
than the combined rate of population
growth and
inflation.
Australia's central bank signaled today it may resume cutting interest rates as soon as next month if weaker -
than - forecast
growth slows
inflation, sending the local currency and bond yields lower.
To prefer 5 % to the current 4 % nominal GDP
growth going forward, and a fortiori to ask for a burst of money creation to get us back to the previous 5 % bubble path, is to ask for chronically higher monetary expansion and
inflation that will do more harm
than good.
A separate discussion paper published by central bank staffers in October 2017 concluded that even under an alternative scenario in which the potential level of
growth was ultimately 1 per cent higher
than forecast by 2020, the effects on
inflation would be «small» and «therefore does not affect the stance of monetary policy.»
If
growth in America is accelerating, which it seems to be, and any remaining slack in the labor markets is disappearing — and wages start going up, as do commodity prices — then it is not an unreasonable possibility that
inflation could go higher
than people might expect.