Sentences with phrase «justify higher equity»
The Fed model is often used to justify higher equity multiples (lower earnings yields).
https://www.researchaffiliates.com/ Not exact matches
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.
Three popular explanations are offered to justify the high level of share prices: that profits will grow faster; that the economy and hence equities have become less risky; and that lower, more stable inflation will reduce real interest rates.
In fact, only a permanently low equity risk premium can justify the high stock prices we now enjoy.
Given the very low payouts on most bonds, and the relatively higher MERs charged by most bond mutual funds (compared to bond ETFs), she felt it made more sense to focus on those mutual funds that at least had a good shot at beating the indexes and justifying their slightly higher MERs: that is, stock or equity mutual funds.
A general rule of thumb is that it takes about two or three years of owning a property to build up enough equity to justify these high transactional costs.
With yields on «risk - free» assets such as government bonds so low, the higher valuations for risk - on assets like equities might be justified.