Sentences with phrase «low equity valuations»

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.

Stronger growth, higher inflation and low equities valuations make a compelling case for a fresh look at Japan.

Not exact matches

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.»

Should listings become scarce, their valuations would climb, lowering the cost of capital raised on equity markets and attracting more companies back into the public sphere.

Equity valuations will take time to moderate, and investors will have to guide their expectations lower.

Yet the current situation actually creates a double positive for stocks: interest rates are likely to stay lower for longer, which helps support equity valuations while also providing investment - grade issuers with the ability to borrow cheaply and increase shareholder value.

«While everyone is focused on valuation and bubbles (to some degree rightfully so), the fact remains that the last few years have been supported by a low level of net equity issuance that has, all else equal, supported prices,» says Dan Greenhaus, chief global strategist at BTIG.

If equities in one part of the world are overvalued, diversification helps ensure that lower valuations in other parts of the world help offset any potential risks and even out portfolio returns over time.

For instance, equity crowdfunding is not a great solution at an early, early stage, because it can be really expensive in the long term, when you have a low valuation... So we would help an entrepreneur understand, well, let's look at debt - based crowdfunding,» he says.

To the extent that lower Treasury yields are even weakly associated with higher equity valuations, recognize that this effect is also expressed over time as lower subsequent stock market returns.

Still, lower valuations and monetary accommodation suggest investors should consider raising their allocation to non-U.S. equities.

Indeed, in the past, U.S. equity markets have been more resilient to tightening monetary conditions if valuations were flat or lower over the preceding 12 months.

«Absent material equity valuation improvements for Ares and KKR, we expect further conversions of Fitch - rated alternative investment managers to be decreasingly likely, given that the remaining managers generally have more incentive income which would not benefit from the lower tax rate,» said Meghan Neenan, head of North American Non-Bank Financial Institutions at Fitch.

If one compares WLL (Jan 11 close — $ 47.55) & KOG (Jan 11 close — $ 9.20) on the parameters mentioned in the table below, WLL appears to be an obvious choice due to its lower valuation and debt / equity ratio.

When valuations move from elevated levels to historical lows over the span of several market cycles, the result is a «secular bear market» and headlines about the permanent death of equities.

Finally, Chinese stocks (measured by the Shanghai Stock Exchange Composite Index) have trailed their Brazilian counterparts (measured by the Ibovespa Index) and moved in lock step with Russian equities (represented by the MICEX Index) since late January, based on Bloomberg data, and their low valuations are poised to potentially rise in a risk - on environment.

With lower energy prices, the potential for resolution to increase confidence, and the reasonably low valuations currently afforded to small - cap growth equities, now may not be the time for pessimism.

The current environment of low interest rates and elevated equity valuations has many investors in a tight spot, as return expectations are lower than usual for both bonds and domestic stocks.

The Series A Preferred shall also be convertible into any future series of Preferred Stock (the «Future Preferred») under either of the following circumstances: (a) if such conversion is approved by the Board or (b) if such conversion is in connection with a future Preferred Stock equity financing in which the Company's fully diluted pre-money valuation is greater than the Company's fully diluted post-money valuation immediately following the Series A Financing contemplated by this term sheet (a «Future Financing»), in either case, on a one - for - one basis (subject to anti-dilution adjustment) at the option of the holder; provided however, if such conversion is in connection with a Future Financing, that the holder may convert into shares of Future Preferred only in the event that all of such shares of Future Preferred received by the holder upon conversion are sold to an Approved Investor (as defined below) no later than 90 days following the first closing of the Future Financing at a price per share no lower than the price per share at which the Company sells shares of such Future Preferred in the Future Financing and, provided further, that such Approved Investor is not an affiliate, family member, or related party of the holder.

The YC documents are probably fine in situations where the investor (i) wishes to purchase equity rather than convertible debt, (ii) is otherwise somewhat indifferent on terms other than percentage ownership of the company, liquidation preference and right of first offer in future financings, (iii) is investing at a fairly low valuation (i.e. a couple of million dollars), and (iv) is only investing a small amount (i.e. a couple hundred thousand dollars or less).

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.

A weaker U.S. dollar, too, has helped in recent months, as have lower, attractive valuations relative to developed - market equities.

However, I believe that companies are generally better off with convertible debt rather than an equity financing at a low valuation.

Going forward, as Japanese companies raise their notoriously low return on equity, Japanese stocks should be supported by relatively cheap valuations and rising dividends.

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.

This recent instability comes as yields have jumped from July record lows and investors have become concerned about the implications of higher bond yields for equity valuations.

We favor emerging market (EM) equities, given structural reforms, improving profitability and low valuations.

This chart shows the median (because it is less sensitive to outliers) and upper + lower quartiles of emerging market equity valuations across countries.

Rather, the current economic downturn is likely to focus its damage on asset prices - the U.S. dollar, home values, low and mid-quality debt, and equity prices (largely through the combination of narrowing profit margins and lower valuations).

Interest rates are close to historic lows, equity valuations and bond prices appear stretched, and global economic growth has slowed.

One of my favorite Twitter follows @LadyFOHF shared the below scatter chart from Morgan Stanley that attempted to map areas of the global market that were both cheap (valuation ranks at the lower end of its 10 - year history) and defensive (a low or negative correlation to global equities).

As corporate Japan has started to take advantage of recovering risk appetite, low yields and yen strength to invest abroad, opinions on valuation of Japanese overseas acquisitions among listed firms have now begun to diverge substantially between foreign investors in listed Japanese stock and private equity / venture capitalists.

Stock markets are tumbling int he wake of the decision but given the recent strength in equities, in the face of the rising interest rate expectations, we don't expect a serious move lower after the decision, despite the valuation concerns.

The past several years have featured little more than a gigantic asset swap, the short description being that massive volumes of government debt have been swapped by central banks for massive volumes of idle bank reserves, while massive volumes of low - yielding, covenant - lite debt have been issued into the hands of yield - seeking investors, in order to retire massive volumes of corporate equities at elevated valuations through buybacks.

So, despite stocks being at valuation lows we hadn't seen in decades, they tempered their enthusiasm for equities because of a negative macro overlay.

When interest rates are high and equity valuations are low, the reverse is true.

The basis for this positioning was our view that international equities stood to benefit from a longer runway for economic growth, stronger corporate earnings, and lower valuations relative to the U.S. market.

One of the great anomalies of investing: The historical long - term outperformance of certain smart beta or factor - based strategies relative to the broader equity market (think choosing stocks based on their valuations, momentum, low volatility or quality metrics such as profitability).

With equity valuations high and bond yields low, investors are parsing the latest news and economic data for hints to the future.

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.

We do not see equity valuation metrics falling back to historical means in an environment where earnings are staging a sustained recovery and long - term rates are low.

Returning to Mr. Hibbert, he would appear to share this view: «Given that the starting valuation for equities is now very low, then if those companies can continue to increase their earnings profile I think you will see very strong returns because you will get both capital growth and dividend yield.»

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).

Portfolio Manager Mark DeVaul discusses the strength of the U.S. consumer and shares his thoughts on current market valuations, explaining why he remains optimistic about U.S. equities in the current low interest rate environment.

Investors still cite the low costs of ETFs, but with the S&P 500 trading at a P / E ratio of 21x of higher, and earnings growth remaining persistently low, Narhi and Barr don't think equity valuations are worth the risk.

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

Thus, traders and investors using aggregate financial accounting numbers to derive superficial financial ratios (e.g. profit margin, return - on - equity) and valuation metrics (e.g. low price - to - earnings, low price - to - book) without understanding the underlying business model, the related - party transactions artificially inflating the aggregate financial numbers and the data generation process in the financial footnotes can be misled.

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.

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.

Thus, traders and investors using aggregate financial accounting numbers to derive superficial financial ratios (e.g. profit margin, return - on - equity) and valuation (e.g. low price - to - earnings, low price - to - book) without understanding the underlying business model, the related - party transactions artificially inflating the aggregate financial numbers and the data generation process in the financial footnotes can be misled.