Sentences with phrase «lower average rate of return»

Natural by - products of slower potential growth are not only weaker corporate profits and dividends, but also a lower average rate of return on investments.

Not exact matches

Private equity returns remained strong but were lower than the prior year quarter, while income from our fixed income investment portfolio increased due to a higher average level of fixed maturity investments and higher short - term interest rates.

Retirees are facing problems very similar to the average pension fund: In addition to not having enough cash contributions to keep up with the costs of aging, their returns have been hurt by interest rates that have been too low for too long.

Because low - risk investments return roughly 20 % on average in a country with 20 % nominal GDP growth, financial repression means that the benefits of growth are unfairly distributed between savers (who get just the deposit rate, say 3 %), banks, who get the spread between the lending and the deposit rate (say 3.5 %) and the borrower, who gets everything else (13.5 % in this case, assuming he takes little risk — even more if he takes risk).

In a fairly poor scenario, even if only a 5.7 % long - term EPS / dividend growth rate is achieved (chosen to match the previous 7 - year average EPS growth), then the current price in the low $ 80's can still offer a 9 % long - term rate of return, based on the DDM again.

At the annual shareholders meeting this year, Buffett explained that he thought Berkshire Hathaway's intrinsic value grew at an average annual rate of about 10 % over the last decade, but he warned that future returns would be lower if interest rates remained near generational lows.

These projections are based on a hypothetical 6 % rate of return less a 0.25 % low - cost annual annuity charge, and a 6 % rate of return less a 1.26 % annual annuity charge, which is the national industry average annual charge as of 12/31/2016, according to Morningstar, Inc..

My average gross savings rate exceeded 50 % for 9 years and the end result is: — 61 % of my wealth has come from saving; and — 39 % from investment return on a balanced low expense low tax portfolio of assets which has achieved a CAGR of 6.9 % over that period.

The decline to date in public debt charges of $ 1.4 billion (8.9 %) largely reflects lower average effective interest rates and lower inflation adjustments on Real Return Bonds.

Queensland growers had lower average prices for their vegetables, which contributed to a sharp decline in their rate of return from 2012 - 13 to 2013 - 14.

The Pro Slate 8's screen was slightly more accurate than most tablets, returning a 4.45 Delta - E rating (lower is better), as compared to the average tablet score of 5.6.

Some of these factors include above average earnings per - share growth rates, above average return on equity, excess free cash flow, low debt - to - equity ratios, and shareholder friendly management.

In a lower return environment, the true tax deferral benefit of extending the average holding period of an investment from 2 years to 5 years — chopping the portfolio turnover rate from 50 % down to 20 % — is actually less than 5 basis points, which can be made up in the blink of an eye through a lower cost investment change or a mere day's worth of relative returns (not to mention weeks, months, or years)!»

Some of these factors include above - average earnings per - share growth rates, above - average return on equity, excess - free cash flow, low debt - to - equity ratios, and shareholder - friendly management.

In this world, a rate of return that is below average but is achieved with very low volatility can be considered an exceptionally good result.

But given today's low interest rates (recently about 2.3 % for 10 - year Treasuries) and relatively rich stock valuations (Yale finance professor Robert Shiller's cyclically adjusted P / E ratio for the stock market recently stood at 29.2 vs. an average of 16.7 since 1900), it would seem to strain credulity to expect anything close to the annualized returns of close to the annualized return of 10 % for stocks and 5 % for bonds over the past 90 years or so, let alone the dizzying gains the market has generated from its post-financial crisis lows.

However, because of this inherent safety, the average mortgage bond tends to yield a lower rate of return than traditional corporate bonds that are backed only by the corporation's promise and ability to pay.

Most of our investments have characteristics that have been associated empirically with above - average investment rates of return over long measurement periods: a low stock price in relation to book value, a low price - to - earnings ratio, a low price - to - cash - flow ratio, an above - average dividend yield, a low price - to - sales ratio compared to other companies in the same industry, a significant pattern of purchases by insiders, a significant decline in share price.

Rates are at their lowest right now with returns of bonds far below the historical average of 5.18 % but a strong stock allocation should prolong your portfolio's longevity.

It does benefit, however, from holding healthier underlying companies with reduced instances of delisting (0 vs. 9), which leads to a higher average total return (13.4 % vs. 11.4 %), lower volatility (13.6 % vs. 15.3 %), and higher subsequent five - year dividend growth rate (18.0 % vs. 11.1 %).

This often serves as the benchmark in most portfolio discussions and has been around for ages as the go - to portfolio.The average rate of return on this portfolio since 1972 has been of 5.8 % with a low standard of deviation of 11.6 %.

The average rate of return on this portfolio since 1972 has been 5.8 % with a low standard of deviation of 11.4 %.

If you choose to invest in an AA rated borrower, your return may be lower (averaging 7 % or so), but of course, that type of loan has a much lower risk.

Returns of 1 % or less are not impossible for bond investors and with both low interest rates and market fundamentals suggesting stocks will produce below - average returns, taking calculated risks now may be more important thaReturns of 1 % or less are not impossible for bond investors and with both low interest rates and market fundamentals suggesting stocks will produce below - average returns, taking calculated risks now may be more important thareturns, taking calculated risks now may be more important than ever.

But when valuations are low the expected rate of return is much higher than average.

We know from history (see Shiller PE 10) that when valuations are high the expected rate of return is lower than average.

But when the PE 10 is low the expected rate of return for the next 20 years is higher than average.

Buying stocks when valuations are low provides greater that average rates of return with less risk.

In simplified terms, if PE 10 is high the expected rate of return for the next 20 years is lower than average.

On the other hand, when stock market valuations are low the next 10 -20 years have higher than average rates of return.

You get debt relief by obtaining lower monthly payments and a lower interest rate than the average of your previous debt and the lender in return makes sure he is your only creditor and will have priority when it comes to recovering his money.

Since student loan interest rates tend to be lower than the average rate of return from the stock market, it makes mathematical sense to invest rather than pay off student loans early.

Since 1951 the low PB value decile has generated a compound annual growth rate (CAGR) of 15.0 percent and an average annual return (AAR) of 17.9 percent.

These projections are based on a hypothetical 6 % rate of return less a 0.25 % low - cost annual annuity charge, and a 6 % rate of return less a 1.26 % annual annuity charge, which is the national industry average annual charge as of 12/31/2016, according to Morningstar, Inc..

The hypothetical 6 % rate of return is equivalent to a 5.74 % net annual rate of return for the low - cost tax - deferred variable annuity, and a 4.66 % net annual rate of return for the national industry average tax - deferred variable annuity.

While some exchange - traded funds (ETFs) have rates of return as high as 12 %, and even funds with lower interest rates will like still be a few points higher than the average interest rate on a cash value policy.

This one shows an average rate of return since 1972 of 5.8 % with a low standard of deviation of 11.4 %.

With an average rate of return since 1972 of 5.8 % and a low standard of deviation of 11.6 %, this portfolio has been a stable winner over the past decades.

Therefore, by capturing both higher - performing assets and lower - performing assets, diversification aims to earn a more level, average rate of return.

«I also assumed returns of 6 % gross annually on her RRSP, as well as a very conservative 2 % net return on her non-registered investments — much lower than the 15 % average annual rate of return she's received from her investment portfolio up until now.»

The average CAGR for the diversified portfolio during rate hike cycles has been 8 %, which is lower than the overall 12 - month return of 9.7 % but still quite robust.

However, the pace of decline returned to near - average rates by July, and the end - of - summer minimum sea ice extent, recorded on September 10, eventually tied for second lowest with 2007 (2012 remains the lowest in the satellite time series by more than 600,000 square kilometers or 232,000 square miles).

But the rate of return is lower on average than simply investing the money in an IRA, and the fees involved in redeeming the cash — called surrendering the policy — make it less than ideal.

Money would be added to your surrender value because interest rates are lower than your average rate of return.

The rate is low, something like libor +1 %, however the loan is collateralized by moving market positions to cash and therefore you are missing out on the average 7 % market returns., so the overall rate is closer to 8 - 9 %, so its a tradeoff of opportunity cost versus convenience.

To take the extreme case, it's very rare for the Baa - rated corporate bond yield to be less than the average REIT dividend yield: that has happened only at times when investors were most dramatically avoiding REITs, most recently in March 2009 at the lowest point of the Great Financial Crisis — and in the 12 months following that episode, those investors who bucked the market and bought into REITs were rewarded with total returns that exceeded 100 percent.